CEFS vs CEFZ

CEFSBSaba Opportunistic Hedged Closed-End Funds ETF

CEFZCRiverNorth Active Income ETF

In short

CEFS Saba buys closed-end funds trading below net asset value, then hedges rate risk by shorting Treasuries and bond ETFs. Running since 2017, steered by the firm known for pressing CEF boards to close those discounts.

CEFZ A 2006 mutual fund that became an ETF in 2025, still running the same play: buy closed-end funds trading below the value of what they hold, and collect the income. All-in cost is 2.82%, with no waiver behind it, and cash goes out monthly.

Stated mandate

CEFS The Fund seeks capital appreciation and dividend income.

CEFZ The Fund seeks long-term capital appreciation and income. Its adviser allocates among international and domestic equities, fixed-income securities, and cash, using underlying funds or direct investments.

Why people hold it

• CEFS At 2.61%, it undercuts the CEF-of-funds peers beside it: PCEF 2.71% (net of a waiver through August 31, 2027), CEFZ 2.82%, YYY 3.23%, FCEF 3.69%. Also below the category median.
• Two levers, both in the prospectus: own CEFs priced under their net asset value, and short Treasuries or bond-index ETFs to damp interest-rate exposure.sec.gov
• The sub-adviser is not a passenger. Saba Capital runs activist campaigns at closed-end funds, pushing boards for tender offers near NAV and governance change.cnbc.comsec.gov
• Live since March 2017 under Saba, with a few hundred million in assets and a seat in the upper half of a small peer group.

• CEFZ The angle is closed-end fund discounts. RiverNorth hand-picks CEFs trading below asset value instead of tracking a CEF index, a strategy it has run since the predecessor fund launched in 2006.true-shares.comtrue-shares.com 2
• At 2.82% total with no fee waiver in play, it sits below the median of its seven-fund peer group, and under YYY (3.23%) and FCEF (3.69%).
• Most of that 2.82% is the underlying funds' own expenses, not the adviser's cut: the prospectus fee table shows acquired fund fees as the bigger line, with a unitary fee covering operating costs.sec.gov
• Pays monthly, under a stated aim of a 10% annualized distribution rate, and the portfolio does what the mandate says: around 50 underlying funds across equities and bonds.true-shares.com

Worth knowing

• CEFS Discounts can widen as easily as they narrow, and the hedge is aimed at interest rates, not at equity or credit drawdowns.sec.gov
• 2.61% is a steep sticker in ETF terms, below the category median but far above plain index funds. Fund-of-funds structures stack costs.
• The board can reset the distribution rate and schedule on Saba's recommendation, and has done so. Income timing is not fixed.yahoo.com

• CEFZ A distribution target is a policy, not a yield. Payouts can include return of capital, which the fund discloses in its Section 19(a) notices.true-shares.comtrue-shares.com 2
• Discount capture cuts both ways: the discounts on its holdings can widen before they close, and you carry the underlying funds' risks too.sec.gov
• It is one of the smaller, thinner-traded names in an already small category, so the bid-ask spread is a real part of the cost of getting in and out.

Full CEFS profile⁠

Full CEFZ profile⁠