Calamos Launches Closed-End Funds Income & Arbitrage ETF

Calamos Advisors has launched the Calamos CEF Income & Arbitrage ETF (NYSE Arca: CCEF) on the New York Stock Exchange. The actively managed ETF seeks high current income and long-term capital appreciation. CCEF targets U.S. and non-U.S. closed-end funds that offer attractive income and arbitrage opportunities from trading at discounts. It may have exposure to equities, fixed income, convertibles, derivatives, and master limited partnerships (MLPs).

According to the prospectus, the fund’s managers seek closed-end funds trading at attractive discounts, then sell them when the arbitrage opportunity has been achieved by capturing the benefit of discount narrowing. They can also sell a fund when the discount level no longer diverges substantially from its underlying asset value.

See more: “Calamos Launches Convertible Equity Alternative ETF

When selecting the closed-end funds for CCEF’s portfolio, Calamos uses both quantitative and fundamental tools to identify funds that are trading at a discount. The issuer also considers the fund’s asset allocation, event research, and trading opportunities.

CCEF may also use derivative instruments such as options, index futures, and forward contracts to write options and even take short positions.

Expanding Its ETF Suite

The firm has been steadily building up its suite of exchange-traded funds since entering the ETF market last year. In October, the manager launched the Calamos Convertible Equity Alternative ETF (CVRT). The active fund provides investors with targeted access to equity-sensitive convertibles in an ETF. The company listed its first equity ETF, the Calamos Antetokounmpo Global Sustainable Equities ETF (SROI), in February.

“Calamos entered the ETF market in just 2023, so it is great to see them expand their lineup,” said VettaFi’s Head of Research Todd Rosenbluth. “They have a strong heritage of active management to tap into and support ETF-minded advisors.”

CCEF charges 74 basis points.

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