PCEF Profile
The Invesco CEF Income Composite ETF is designed to offer investors exposure to a diversified portfolio of closed-end funds (CEFs) that focus on generating income. The fund commits at least 90% of its total assets to the components of the underlying index. This index is specifically curated to reflect the performance of U.S.-listed closed-end funds that are primarily engaged in asset management strategies aimed at producing taxable annual yield.
As a "fund of funds," the ETF does not invest directly in individual securities but rather allocates its assets among the common shares of closed-end funds included in the index. These closed-end funds may cover a broad range of asset classes, including equities, fixed income, and alternative investments. The approach allows the ETF to benefit from the specialized investment strategies and expertise of the underlying CEFs, which may include high-yield bonds, dividend-paying stocks, and other income-generating assets.
The indexs composition includes closed-end funds that are structured under U.S. law and are managed with the goal of producing regular taxable income for investors. By focusing on funds that emphasize income generation, the ETF aims to provide a steady stream of yield while benefiting from the diversification and professional management inherent in closed-end fund structures. This strategy offers investors a way to gain broad exposure to various income-producing investments without having to select individual securities.
Investors in the Invesco CEF Income Composite ETF can expect their investment to be allocated across a diverse array of closed-end funds, each with its own income-generating strategy. This diversified approach aims to enhance yield potential while managing risk through exposure to a wide range of asset classes and investment styles. The ETFs structure is designed to leverage the expertise of the underlying funds, potentially offering enhanced income opportunities while maintaining a diversified investment profile.
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