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. This has sent advisors and investors searching for alternative ways to build their portfolios.
For those looking to foster resilient diversification within their portfolios, closed-end funds (CEFs) could certainly help. This is due to a range of different yet equally crucial factors.
To start, closed-end funds only offer a fixed number of shares through an initial offering period. As such, to gain access to these funds, investors need to either buy in during the offering period or purchase them from shareholders looking to sell.
Crucially, closed-end funds can hold a wide variety of assets. By investing in CEFs, advisors and investors can gain access to securities across the field of equities and fixed income.
CCEF Offers a Wide Blend of Discounted CEFs
The Calamos CEF Income & Arbitrage ETF (CCEF ) can help investors build access to a diversified selection of CEFs. CCEF’s strategy focuses on investing in a wide variety of closed-end funds that are trading at compelling discounts.
Closed-end funds within CCEF’s portfolio offer access to a good number of attractive investment sectors. This includes exposure to fixed income, international equities, energy infrastructure, and more.
This especially diverse selection of closed-end funds can be extremely beneficial in the current market. Both fixed income and international equities have asserted themselves as viable solutions to U.S. equity uncertainty. Additionally, diverse security selection can help create a more attractive risk profile for a portfolio.
Through its focus on valuable CEFs trading at a discount, CCEF offers potential for both yield and capital appreciation. Recent results have particularly showcased the value of this fund as an income-generating allocation. As of February 28, 2025, the fund has a distribution yield of 8.14%.
That said, CCEF’s long-term returns are no slouch either. Over the last 12 months, CCEF’s NAV has jumped more than 18%, as of February 28, 2025.
For more news, information, and analysis, visit the Alternatives Channel.
Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.
An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
Risks of investing in the Fund include risks associated with (1) the Fund’s investment in closed-end fund shares; (2) the closed-end funds’ investments; and (3) any other investments of the Fund, including investments in ETFs, BDCs, and derivative instruments. The shares of closed-end funds may trade at a discount or premium to, or at, their NAV. The securities of closed-end funds may be leveraged. As a result, the Fund, may be exposed indirectly to leverage through an investment in such securities. An investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of its shares) will be diminished. In addition, closed-end funds are allowed to invest in a greater amount of illiquid securities than open-end mutual funds. Investments in illiquid securities pose risks related to uncertainty in valuations, volatile market prices, and limitations on resale that may have an adverse effect on the ability of the fund to dispose of the securities promptly or at reasonable prices. The Fund may invest in BDCs, which typically operate to invest in, or lend capital to, early stage-to-mature private companies as well as small public companies. The Fund’s investment in shares of ETFs subjects it to the risks of owning the securities underlying the ETF, as well as the same structural risks faced by an investor purchasing shares of the Fund, including authorized participant concentration risk, market maker risk, premium-discount risk and trading issues risk. Derivatives are instruments, such as futures and forward foreign currency contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered more speculative than other types of investments.
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
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