ETF spotlight on PowerShares CEF Income Composite Portfolio ETF (NYSEArca: PCEF), part of an ongoing series.

Assets: $270.3 million.

Objective: The PowerShares CEF Income Composite Portfolio fund tries to reflect the performance of the S-Network Composite Closed-End Fund Index. The fund is a type of “fund-of-funds” in that it tracks U.S.-listed closed-end funds. [5 ETFs for Income]

Holdings: Top holdings include: Eaton Vance Tax-Managed Global Diversified Equity Income Fund 5.8%, AllianceBernstein Income Fund 3.8%, Eaton Vance Tax-Managed Diversified Equity Income Fund 3.0%, Eaton Vance Limited Duration Income Fund 2.9% and Nuveen Mutli-Strategy Income & Growth Fund 2.5%.

What You Should Know:

  • Invesco PowerShares sponsors the fund.
  • PCEF has an expense ratio of 1.62%.
  • The fund holds 123 securities.
  • Investment categories include: bonds 44.9%, high-yield 19.5% and option income 35.6%.
  • The ETF is up 3.4% over the past month, up 12.9% over the last three months and up 6.8% over the past year.
  • The fund is 3.3% above its 200-day exponential moving average.
  • PCEF has a 12-month yield of 8.2%.
  • Closed-end funds include a group of publicly traded investment companies that garner a fixed amount of capital through the initial public offering. Afterward, the fund is structured and listed like a normal stock.

The Latest News:

  • “Investment trusts have outperformed open-ended funds over the long term, over most timescales, in almost all key comparable sectors,” Alan Brierley, analyst at Collins Stewart, said in a Financial Times report.
  • Brierley, though, notes that asset growth in closed-end funds have been comparably smaller than mutual fund growth because of their greater volatility due to their stock market listings.

PowerShares CEF Income Composite Portfolio ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.