Calamos CEF Income & Arbitrage ETF

CCEF

Market cap $32.3M

When it comes to taming inflation and getting it back down to a more approachable threshold, the Federal Reserve was already facing a difficult challenge. Inflation was proving to be stickier than expected, and the central bank was seeing its independence challenged by the federal government.

If the first few months of 2026 can serve as any indication, we believe shifting macroeconomic conditions are not exactly going to go away any time soon. For advisors, this can lead to difficulty in making sure their clients meet their financial goals.

Two key forces drove investors' November interests on this ETF content platform: the strategic hunt for durable growth amidst tech volatility, and the perennial demand for income and alternative diversification.  The five most popular articles on our platform last month reflect this split.

With rate cuts and other macroeconomic headlines fresh on everyone's minds, portfolio income may continue to remain crucial in the days to come. As such, it's important for advisors and investors alike to consider any and all options available when it comes to fostering compelling and consistent yield.

In March, VettaFi held its annual Exchange Conference, bringing together experts and asset managers from across the globe. With economic uncertainty top of mind, many attendees were eager to learn about alternative strategies they can put to work in unsettled markets.

All this market uncertainty helps highlight one particularly important fact of asset management: It pays to have a diversified portfolio. Currently, many of 2024's tried-and-true growth strategies are struggling to regain their footing.

On this week's episode of “ETF of the Week,” Chuck Jaffe of “Money Life” discussed the Invesco CEF Income Composite ETF (PCEF) with Roxanna Islam, head of sector and industry research at VettaFi. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.

Closed-end funds offer unique opportunities due to their discount/premium mechanisms, allowing share prices to deviate from net asset value per share in a wild manner. In general, CEFs often provide diverse exposure across equity and fixed-income portfolios, and they even offer exposure to hybrid portfolios, but also allowing for sector-specific exposure. One important note is that not all premiums or discounts indicate a buying or selling opportunity; instead, it can make more sense to examine relative value over historical periods.

For investors looking to foster more income in their portfolios, closed-end fund (CEF) ETFs can be a strong option. Unlike open-end funds, closed-end funds won't need to repurchase shares from investors.

Calamos CEF Income & Arbitrage ETF offers high monthly income by investing in a diversified portfolio of income-producing closed-end funds. This fund-of-funds approach provides significant diversification in one investment, as the exposure ends up being spread across a diverse group of different assets and sectors. The ETF has a higher total expense ratio, primarily driven by the underlying CEF expenses; still, they've been able to deliver some solid results.