Invesco CEF Income Composite ETF

Invesco CEF Income Composite ETF (PCEF) is a fund of funds. It holds more than 100 U.S.-listed closed-end funds that aim to produce taxable income from bonds, high-yield debt or stock options, and it follows the S-Network Composite Closed-End Fund Index. It pays monthly, and its trailing 12-month yield was 7.77% as of October 27, 2026. The trade-off is cost: total expenses of 2.71% a year once the underlying funds' own costs are counted.

• Over the year to Oct 27, 2026, PCEF returned +3.4%, 8th of 8 among similar funds.
• Its 5-year annualized return was +3.8%.
• Its worst full calendar year was 2022 (-18.6%); its best was 2024 (+16.6%).
• The deepest fall in its price history was 24.2% (Nov 8, 2021 to Oct 14, 2022), recovered by Aug 21, 2024.

As of Aug 31, 2026, the fund held 105 securities; the ten largest made up 29.36% of assets. It also reported 3.86% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors withdrew a net $19.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.85%, -1.09%, +2.28%.

PCEF tracks the S-Network Composite Closed-End Fund Index, which S-Network Global Indexes compiles and maintains. The index measures U.S.-listed closed-end funds organized in the United States whose stated objective is to invest in taxable investment-grade bonds, taxable high-yield ("junk") bonds or options. A closed-end fund raises a fixed pool of money and then trades on an exchange like a stock. Its share price can sit above (a premium) or below (a discount) the value of what it owns. As of October 31, 2025, the index had 109 members.

Invesco uses "full replication." It generally holds every fund in the index in proportion to its index weight, and it keeps at least 90% of total assets in index members. It doesn't try to beat the index, so it usually buys or sells a fund only when the index adds or drops it. Portfolio turnover was 22% in the prospectus year. The index can include closed-end funds run by Invesco affiliates.

PCEF itself held no derivatives as of August 31, 2026, but some of the funds it owns write options, use derivatives or hold junk bonds. Its largest holdings included Eaton Vance Tax-Managed Global Diversified Equity Income Fund (4.5%) and BlackRock Science & Technology Term Trust (3.2%). Holders pay two layers of costs: PCEF's own fee and each underlying fund's expenses.

• PCEF charges 2.71% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.05% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $274 in the first year and $3,086 over 10 years (assuming a 5% annual return).

PCEF pays monthly and had a 7.77% trailing yield as of October 27, 2026, but its swings and 2.71% cost make it an income piece, not a core holding.

PCEF could add a monthly income stream: $1.49 a share over the 12 months to October 27, 2026, a 7.77% yield. That income has come with stock-like swings. The fund launched in 2010, after the 2008 crisis. In the first quarter of 2020 it lost 22.97%. It lost 18.38% in 2022, its worst calendar year from 2015 through 2025. Its deepest drop, 24.2% from November 2021 to October 2022, took about 22 months to recover, ending in August 2024. Anyone selling shares to raise cash in a year like 2022 would have sold at depressed prices. Cost matters too: in the SEC's standard $10,000 example, expenses total $274 after one year and $3,086 after 10 years. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.