FOF - Invesco CEF Income Composite ETF: A Rally To Sell Into Others Preferred

2024-02-10 07:51:04 ET

Summary

• Invesco CEF Income Composite ETF is based on the S-Network Composite Closed-End Fund Index and focuses on producing attractive yields.
• PCEF charges a high total expense ratio of about 3% due to fees of the underlying funds held.
• PCEF's performance has been disappointing with annualized returns of 6% over the long run, and there are better performing alternatives available at significant discounts to NAV.

PCEF Overview

The Invesco CEF Income Composite ETF ( PCEF ) is an ETF based off the S-Network Composite Closed-End Fund Index. The fund will normally invest at least 90% of its assets matching this index.

This particular index is based off a universe of approximately 200 US-based CEFs that are mainly focused on producing attractive yields. It uses some screening methods to rule out certain CEFs according to selected criteria. This includes, amongst other factors, avoiding CEFs with high expense ratios, low liquidity, and excessive premiums to NAV. The finer details of this index are laid out in the PCEF prospectus here....

For further details see: