With rate cuts and other macroeconomic headlines fresh on everyone’s minds, portfolio income may continue to remain crucial in the days to come.
As such, it’s important for advisors and investors alike to consider any and all options available when it comes to fostering compelling and consistent yield. This includes looking for strategies that might be considered a little out-of-the-box.
For instance, closed-end funds might be worth taking a closer look at. Closed-end funds are a unique type of fund that provide a differentiated means for fostering portfolio income.
A closed-end fund will sell a specific number of shares during its initial IPO to build up investment capital. After that, no new shares will be issued.
From there, shares are then traded on a traditional stock exchange. Many investors and advisors look toward trading and holding these funds for their deep income and yield potential.
But income isn’t the only thing that closed-end funds can offer. Closed-end funds tend to provide a path to income that is drastically different from that of a traditional bond strategy. As such, closed-end fund exposure can help provide not only high yield, but deep diversification opportunities as well. Considering the relative mercurial bond outlook due to rate cut uncertainty, a diversified fixed income portfolio may be more valuable in the months to come.
CCEF Offers Income Through Discounted CEFs
It’s now easier than ever to gain access to closed-end funds through the ETF wrapper. One fund that could stand out from the crowd is the Calamos CEF Income & Arbitrage ETF (CCEF).
An actively managed fund from Calamos investments, CCEF looks to provide a blend of income and capital appreciation by investing in closed-end funds. This is executed through the fund’s distinct strategy, which focuses on finding closed-end funds that are trading at compelling discounts. By doing so, CCEF can generate strong yield while leveraging the discounted closed-end funds to potentially tap into long-term capital appreciation.
Seeking out attractive close-end funds to invest in is no trouble for the Calamos team. The issuer has been navigating the closed-end fund market for well over two decades.
Thus far, CCEF’s strategy has paid off with immensely potent income. As of September 30, 2025, the fund has a 30-day SEC yield of 7.94%.
For more news, information, and strategy, visit the Alternatives Content Hub.
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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