(CEFS) Saba Closed-End Funds - Ratings and Ratios

The Saba Closed-End Funds ETF (BATS: CEFS) is an actively managed ETF that allocates at least 80% of its net assets-plus any investment-grade borrowings-to securities issued by closed-end funds (CEFs). The manager targets a diversified set of CEF sponsors that hold equity and fixed-income assets, with a bias toward funds that emphasize high-income strategies such as dividend-heavy equities, high-yield bonds, and preferred securities.

Key quantitative metrics (as of the latest public filings) include an expense ratio of roughly **0.85%**, assets under management (AUM) near **$350 million**, and a **distribution yield** around **7.2%**, reflecting the underlying CEFs’ propensity to pay elevated income. The fund’s performance is closely tied to two macro-level drivers: (1) **interest-rate environments**, which affect both the cost of borrowing for leveraged CEFs and the relative attractiveness of fixed-income yields, and (2) **closed-end fund discount/premium trends**, where market sentiment can compress or expand the price gap between CEF market prices and their net asset values, directly influencing CEFS’s net returns.

Because CEFS leans heavily on high-income CEFs, its risk profile is sensitive to **credit-spread widening** and **inflation-driven rate hikes**, which can erode the income premium of underlying assets. Conversely, a **flattening yield curve** or a **decline in equity volatility** tends to support the fund’s equity-heavy income sources.

For a deeper dive into the fund’s discount dynamics and risk-adjusted performance, you may find ValueRay’s analytical toolkit useful.