Saba ETF Piles Into Equity Closed-End Funds Eying Big Discounts
- Almost half of active ETF’s holdings are in stock funds
- Wide NAV discounts in muni bond funds are also attractive
A Saba Capital Management actively-managed ETF tracking the closed-end fund industry is loading up on equity-focused products that the firm says offer some of the largest discounts and compelling risk-adjusted returns.
About 45% of the $184 million Saba Closed-End Funds ETF’s (CEFS) portfolio is currently invested in stock-focused vehicles, with those buying municipal debt coming in second. That’s a shift from its historical setup — the ETF has typically invested in funds that purchase fixed-income assets, high-yield funds, in particular since its 2017 launch, according to Leah Jordan, a Saba managing director and product specialist.