CEFZ vs RDFI

CEFZCRiverNorth Active Income ETF

RDFIDRareview Dynamic Fixed Income 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.

RDFI A fund of closed-end bond funds with a hand on the wheel: Rareview buys CEFs trading away from their net asset value for the monthly cash, then short-sells Treasury futures when it wants less interest-rate risk.

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.

RDFI The Fund seeks total return with an emphasis on current income. It invests primarily in fixed-income closed-end funds and may vary allocations across several fixed-income segments.

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

• RDFI Actively run, not a static basket. The adviser can short U.S. Treasury futures to hedge interest-rate risk and rotate across fixed-income segments as its outlook changes.sec.gov
• Targets closed-end funds trading at a discount or premium to net asset value that pay regular cash distributions, with up to 30% allowed in ETFs when those trade better.sec.gov
• It can also run a dividend-capture overlay, buying closed-end fund shares around their distribution dates rather than simply holding them.saytechnologies.com
• Roughly 40 closed-end funds under the hood, and the ETF itself pays monthly.

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.

• RDFI You pay up for the hands-on work: 4.23%, above the category median and above peers like CEFS at 2.61% and PCEF at 2.71% net of a waiver through August 31, 2027.
• Two layers of risk: the underlying closed-end funds can use derivatives and borrowing, and the short Treasury futures hedge loses value when Treasury prices rise.sec.gov
• A smaller, thinly traded fund, so spreads can be wider and sizeable orders can move the price.

Full CEFZ profile⁠

Full RDFI profile⁠