CEFZ vs PCEF

CEFZCRiverNorth Active Income ETF

PCEFBInvesco CEF Income Composite ETF

In short

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.

PCEF One ticker, roughly 110 closed-end funds. PCEF has tracked the S-Network Composite Closed-End Fund Index since 2010, favoring CEFs priced below net asset value and paying out monthly. Cost: 2.71%, net of a waiver through August 31, 2027.

Stated mandate

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.

PCEF The Fund is based on the S-Network Composite Closed-End Fund Index and normally invests at least 90% of total assets in funds included in that Index. It operates as a fund-of-funds, investing in those funds rather than individual securities.

Why people hold it

• 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

• PCEF 2.71% net of a waiver through August 31, 2027 (2.76% gross) sits below the category median and under peers like YYY at 3.23% and FCEF at 3.69%.
• The index does the discount hunting: it screens out closed-end funds with heavy expense ratios or prices above net asset value, and weights wider discounts more heavily.snetworkglobalindexes.com
• Rules over hunches. At least 90% of assets go into index funds spanning investment-grade, high-yield and option-income CEFs, rebuilt quarterly, with cash passed through monthly.invesco.com
• Trading since 2010 and holding its mandate tightly, it ranks among the strongest implementations in a small peer group of CEF-of-CEF funds.

Worth knowing

• 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.

• PCEF Most of that 2.71% is indirect: the underlying closed-end funds' own fees roll into the total, and Invesco's management fee is the smaller slice.sec.gov
• You own CEF share prices, not just their portfolios. Those prices drift to discounts and premiums versus net asset value, adding a second layer of movement.snetworkglobalindexes.com
• Volume is moderate rather than heavy, so spreads carry more weight here than in a mega-cap index fund.

Full CEFZ profile⁠

Full PCEF profile⁠