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The fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment objective by normally investing at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities issued by closed-end funds (the "underlying funds"). The advisor expects to invest in underlying funds operated by a diversified group of closed-end fund managers ("underlying fund managers") that invest in equity and fixed income securities. The fund normally invests in underlying funds that primarily pursue high income opportunities.
Is CEFS's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Closed-end funds can often be quite interesting to income-focused investors as they pay out relatively higher distribution yields. Another key factor is that the funds can trade at discount/premiums to the net asset value per share. While some funds perpetually trade at deep discounts, there are reasons to believe that some don't deserve to.
As credit spreads narrow, fewer and fewer high-yield ETFs are compelling buys. There are exceptions, and I'll be showcasing three of these in this article: CEFS, CLOZ, and JEMB. CLOZ's CLO portfolio provides the highest 7.2% dividend yield and the strongest risk-adjusted returns.
The Saba Opportunistic Hedged Closed-End Funds ETF is one of the best-performing income ETFs of the market. The fund invests in a diversified portfolio of closed-end funds, focusing on equity. It sometimes uses options and derivatives, engaging in trades of all types. CEFS is managed by well-known activist investor Saba, with the fund sometimes benefiting/engaging in these campaigns too.
Saba Opportunistically Hedged Closed-End Fund ETF (CEFS) delivers superior long-term total returns through active management, activist strategies, and interest rate hedging. CEFS consistently outperforms passive and traditional active CEF fund-of-fund peers, with 3- and 5-year annualized returns of 21.34% and 13.91%, respectively. Activist alpha and deep-discount arbitrage allow CEFS to realize market gains faster than peers, while portfolio-level interest rate hedges mitigate leveraged CEF risks.
As credit spreads narrow, fewer and fewer high-yield ETFs are compelling buys. There are exceptions, and I'll be showcasing three of these in this article: CEFS, CLOZ, and JEMB. CLOZ's CLO portfolio provides the highest 7.3% dividend yield and strongest risk-adjusted returns.