ETF Education Report: Calamos CEF Income & Arbitrage ETF (CCEF)

The Calamos CEF Income & Arbitrage ETF (CCEF) is designed to provide investors with income. Its most notable characteristics are its monthly distribution schedule and a distribution yield of approximately 8.29%.

What this ETF is trying to do

CCEF focuses on generating income. It does this by investing in a variety of other funds. Based on the Top Holdings, the ETF holds positions in several Closed-End Funds (CEFs) that focus on different areas, such as health sciences, energy midstream, artificial intelligence, and emerging markets.

Top Holdings (as of October 13, 2026):

• USD: 8.75%

• Eaton Vance Tax-Managed Global Buy-Write Opportunity (ETW): 4.20%

• Virtus AllianzGI Equity & Convertible Income Fund (NIE): 4.10%

• Bexil Investment Trust: 3.56%

• Adams Natural Resources Fund Inc (PEO): 3.55%

• BlackRock Health Sciences Term Trust (BMEZ): 3.03%

• ClearBridge Energy Midstream Opportunity (EMO): 2.77%

• Virtus Artificial Intelligence & Technology Opportunities Fund (AIO): 2.77%

• Nuveen Multi-Asset Income (NMAI): 2.67%

• LMP Capital & Income (SCD): 2.65%

*Note: This is a partial list of the 53 total holdings, and these holdings can change over time.*

What the numbers show

When looking at performance, it is important to distinguish between price return (the change in the share price) and total return (which includes the distributions paid to investors).

• Year-to-Date (YTD): The price return is -0.68%, but the total return is 5.49%.

• One-Year: The price return is -0.90%, while the total return is 7.47%.

An estimated price from roughly one year ago was $28.88, compared to the current price of $28.62.

Income and Distribution Explanation

CCEF usually pays distributions monthly. Over the last 12 months, it has made 12 payments totaling $2.37 per share. This results in a distribution yield of approximately 8.29%.

For new investors, it is important to remember that a high distribution yield alone can be misleading. It tells you how much cash is being paid out relative to the price, but it does not guarantee that the overall value of your investment is growing.

NAV Erosion Explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's underlying assets) declines over time.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the price-based evidence shows an erosion score of 94, which is labeled as "Stable / sideways" with "good" severity. There is no severe erosion-risk flag for this ETF.

Pros

• Consistent Income: The fund has a history of monthly payouts.

• Positive Total Returns: While the share price has dipped slightly, the total returns for the year and YTD are positive.

• Stable Price Trend: The erosion score suggests the price has remained relatively sideways.

Cons

• Negative Price Return: The share price itself has declined slightly over the last year.

• Complex Strategy: Because it invests in other funds (CEFs), it has multiple layers of management.

Beginner Takeaway

CCEF is an income-focused ETF that pays investors monthly. While the share price has seen a small decline, the total return (which includes the cash paid out) has remained positive over the last year. Investors typically use funds like this for cash flow, but they should monitor both the distributions and the share price to see how the overall investment is performing.