At a glance
FCEF charges 3.69% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $83.1M in assets, the 8th largest of that group; it paid 7.37% of its price in distributions over the past 12 months, monthly. Over the past year it returned +6.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +17.4% a year. At its worst it fell 44.8% in the 2020 crash (S&P 500: 33.7%) and 24.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 22 months after the lows. Its ten largest positions make up 30.8% of the fund, out of 61 in all.
The short version
First Trust Income Opportunities ETF (FCEF) is an actively managed fund of funds: rather than holding stocks or bonds directly, it holds 61 US-listed closed-end funds and ETFs, aiming for current income first and total return second. Its trailing 12-month yield was 7.37% as of October 27, 2026, paid monthly. The trade-offs are cost and swings: total annual expenses of 3.69%, and a 44.8% drop in early 2020.
Price history
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FCEF +6.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FCEF official prospectus, to Dec 31, 2024 | — | +17.49% | — | +5.19% | — | +7.05% |
| FCEF price data to Oct 27, 2026 | +5.4% | +6.8% | +17.4% | +5.2% | +8.1% | +7.9% |
- Over the year to Oct 27, 2026, FCEF returned +6.8%, 8th of 8 among similar funds.
- Its 5-year annualized return was +5.2% and its 10-year +8.1%.
- In the 2020 COVID crash it fell 44.8% and regained its old high 9.7 months after the low.
- Its worst full calendar year was 2022 (-19.3%); its best was 2019 (+28.5%).
- The deepest fall in its price history was 44.8% (Feb 19, 2020 to Mar 18, 2020), recovered by Jan 7, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.4% | — |
| 2025 | +14.7% | — |
| 2024 | +17.7% | +17.49% |
| 2023 | +10.4% | +10.12% |
| 2022 | -19.3% | -19.63% |
| 2021 | +19.6% | +19.16% |
| 2020 | +3.9% | +3.94% |
| 2019 | +28.5% | +28.12% |
| 2018 | -9.5% | -9.57% |
| 2017 | +15.8% | +16.56% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 43.2% over that stretch · deepest drop along the way 44.8%, back to its old high 9.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.4% over that stretch · deepest drop along the way 24.8%, back to its old high 21.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4000 | |
| 2025 | $1.6800 | +6.3% |
| 2024 | $1.5800 | +9.7% |
| 2023 | $1.4400 | 0.0% |
| 2022 | $1.4400 | +17.1% |
| 2021 | $1.2300 | +7.9% |
| 2020 | $1.1400 | -5.0% |
| 2019 | $1.2000 | +2.6% |
| 2018 | $1.1700 | +7.3% |
| 2017 | $1.0900 |
What's inside
As of Aug 31, 2026, the fund held 61 securities; the ten largest made up 30.83% of assets, and 3.71% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| INVESCO ACTIVELY MANAGED EXCHANGE-TRADED FUND TRUST VAR RATE INVT | 3.74% | |
| EATON VANCE TAX ADVANTAGED DIVIDEND INCOME FUND COM | 3.39% | |
| EATON VANCE TAX - ADVANTAGED GLOBAL DIVIDEND INCOME FUND COM | 3.31% | |
| EATON VANCE TAX ADVANTAGED GLOBAL DIVIDEND OPPORTUNITIES FUND COM | 3.26% | |
| JOHN HANCOCK TAX-ADVANTAGED DIVIDEND INCOME FUND COM | 3.25% | |
| BLACKROCK SCIENCE AND TECHNOLOGY TRUST SHS | 2.97% | |
| Gabelli Dividend & Income Trust | 2.96% | |
| COHEN & STEERS INFRASTRUCTURE FUND INC COM | 2.72% | |
| TRI-CONTINENTAL CORP COM | 2.69% | |
| SOURCE CAPITAL INC COM SHS OF BEN I | 2.55% | |
| JOHN HANCOCK PREMIUM DIVIDEND FUND COM SH BEN INT | 2.51% | |
| Western Asset Inflation-Linked Opportunities & Income Fund | 2.46% | |
| ABRDN HEALTHCARE OPPORTUNITIES FUND SHS | 2.30% | |
| CENTRAL SECURITIES CORP COM | 2.28% | |
| Western Asset Diversified Income Fund | 2.26% |
By country
United States 96.45%By asset type
Stocks 96.45%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $3.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.78%, -0.63%, +1.89%.
How it works
FCEF does not track an index. Its adviser, First Trust, uses its own model to find, sort and score US-listed closed-end funds and ETFs. The model looks at measures such as fund size, duration (how sensitive a fund's bonds are to interest rates), leverage ratio, distribution rate, the premium or discount to net asset value, the sponsor and its payout policy. The adviser changes how much each factor counts depending on its economic outlook. It then researches individual funds to pick the final portfolio. Portfolio turnover was 15%, according to the prospectus filed December 29, 2025.
Most holdings are closed-end funds. These have a fixed number of shares that trade on an exchange, so their price can sit above (a premium) or below (a discount) the value of what they own. Discounts often widen in sell-offs. Many closed-end funds borrow money to raise income, which makes both gains and losses bigger. FCEF does not borrow itself, and it held no derivatives as of August 31, 2026.
You pay two layers of fees: FCEF's 0.85% management fee, plus its share of each underlying fund's expenses. Together they come to 3.69% a year. As of August 31, 2026, the 10 largest positions made up 30.8% of the fund. The biggest were Invesco Variable Rate Investment Grade ETF (VRIG) at 3.7%, followed by three Eaton Vance tax-advantaged dividend funds (EVT, ETG, ETO) and John Hancock Tax-Advantaged Dividend Income Fund (HTD).
What it really costs
- FCEF charges 3.69% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
FCEF exists mainly to pay income: a 7.37% trailing yield as of October 27, 2026, paid monthly, drawn from a mix of income-focused closed-end funds.
FCEF could add a steady monthly payout from a spread of closed-end funds that hold dividend stocks, infrastructure, bonds and loans. In bad markets, though, it has fallen further than its income-fund label suggests. It dropped 44.8% between February 19 and March 18, 2020, and took about 10 months to recover. In the 2022 bear market it fell 24.8% and took about 21.5 months to get back, recovering on July 11, 2024. Its worst calendar year was 2022, at −19.6% (prospectus figures). It launched in 2016, so there is no record for 2008. Anyone forced to sell shares in a slump would sell at low prices, often when closed-end fund discounts are widest. At 3.69% a year, the cost takes a big bite out of the yield. Past results don't predict future ones, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts from a basket of about 61 closed-end funds and ETFs, with no need to pick and monitor them themselves.
- Investors who value a model that weighs closed-end fund discounts, leverage and distribution policies, and who accept 3.69% in total annual costs in exchange.
- Investors who can hold through deep drops like the 44.8% fall in 2020 without needing to sell shares.
Look elsewhere if
- Cost-conscious investors: total annual expenses of 3.69%, including the underlying funds' fees, are far higher than most ETFs charge.
- Investors who may need to sell in a downturn: it fell 24.8% in 2022 and took about 21.5 months to recover.
- Investors who want simple, transparent holdings; many underlying funds use leverage and trade at shifting premiums or discounts to their asset value.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FCEF this fund | 3.69% | $83.1M | +6.8% | +17.4% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does FCEF pay monthly dividends?
Yes. FCEF pays distributions monthly. Over the 12 months to October 27, 2026, it paid $1.68 per share, a trailing yield of 7.37%. That income comes from the closed-end funds and ETFs it owns, and many of them use leverage or high-yield holdings to raise their payouts. Payments are not fixed. They can fall if the underlying funds cut their distributions, as income funds sometimes do in hard markets.
Why is FCEF's expense ratio so high?
FCEF's total expense ratio is 3.69%, according to its prospectus filed December 29, 2025, because you pay two layers of fees. The fund charges a 0.85% management fee. It also bears its share of the costs of every closed-end fund and ETF it owns, including their advisory and administrative fees. Closed-end funds that borrow money also carry interest costs. Each layer reduces the return investors keep.
Is FCEF good for retirement income?
FCEF may suit retirees who want monthly income and can live with big swings. It yielded 7.37% over the 12 months to October 27, 2026. But it fell 44.8% in early 2020 and 24.8% in 2022, and the 2022 recovery took about 21.5 months. With costs of 3.69% a year, it is worth comparing with simpler, cheaper income funds and looking at how it fits the whole portfolio.
What's the difference between FCEF and buying closed-end funds directly?
The main difference is that FCEF does the choosing and spreading out for you. As of August 31, 2026, it held 61 funds, and no single holding was above 3.8%. First Trust uses a scoring model that looks at discounts, leverage and distribution policies. Buying closed-end funds directly avoids FCEF's 0.85% management fee, but you would have to pick, size and monitor each fund yourself.
Does FCEF use leverage?
FCEF does not borrow money itself, and it held no derivatives as of August 31, 2026. Many of the closed-end funds it owns do use leverage, meaning they borrow to buy more assets and raise income. That borrowing makes losses bigger in sell-offs, which helps explain FCEF's 27.74% loss in the first quarter of 2020, its worst quarter. The prospectus confirms the fund may hold underlying funds that use leverage.