The CEFZ ETF does not track a specific benchmark index. Instead, it allocates actively across closed-end funds and various exchange-traded funds. It seeks income and long-term capital growth by weighing the gap between market price and net asset value, along with conditions in the equity and bond markets.

It suits investors who understand active income management and the volatility that comes from shifting closed-end fund discounts, rather than those who simply want exposure to a single index.

This is an actively managed ETF run by RiverNorth.

The product is managed by analyzing the gap between the market price and net asset value of closed-end funds traded on exchanges, and by combining exchange-traded funds that invest in stocks and bonds. Because it uses both quantitative checks and qualitative judgment, it differs in character from index-tracking products whose holdings are fixed.

• Reflects changes in closed-end fund discounts and premiums in its management decisions
• Actively allocates across equity-related and bond-related income assets

Assets under management (AUM) are $41.1M, and the Expense Ratio is 2.82% per year.

Unlike single-index products with fixed holdings and weights, the CEFZ ETF may reflect management decisions that change with market conditions. It is therefore important to look not only at trading liquidity but also at changes in underlying fund discounts and the cost structure.

Performance trends can be affected by changes in closed-end fund discounts and premiums, the direction of the stock and bond markets, and interest rate conditions. Because the product is actively managed, the composition of its holdings and management decisions have a large effect on results, and its movements may diverge from a single index.

When assessing fund flows, do not look only at the distribution history. You should also check the gap between market price and net asset value, trading liquidity, and the costs and asset composition of the underlying funds. If the discount on an underlying asset changes, the product's volatility and the interest of market participants may change as well.

The product is defined by active income allocation and the use of closed-end fund discounts, but underlying fund costs, market price gaps and interest rate sensitivity are factors that must be managed alongside them.

In a comparison of similar income products, the FPEI ETF offers an approach centered on preferred stocks and income securities, the INCM ETF offers broad income asset allocation, and the YLD ETF offers active management centered on high-yield bonds. The MDIV ETF combines several income asset classes, and the IYLD ETF offers multi-asset income exposure. Because the CEFZ ETF is built around the gap between the market price and net asset value of closed-end funds, it is appropriate to use costs, asset class composition and sensitivity to discount changes as the basis for comparison.

When examining the CEFZ ETF, do not judge its income characteristics from the distribution history alone. Also check the composition of the underlying funds, the gap between market price and net asset value, trading liquidity and the cost structure. The effect of active management decisions on results is also worth reviewing.

The CEFZ ETF can be affected by the discount and premium movements of closed-end funds, interest rate and credit conditions, and the volatility of underlying assets. The possibility that the ETF's market price differs from net asset value, along with the additional costs at the underlying funds, can also raise the risk of loss.

The RiverNorth Active Income ETF is an actively managed product that seeks to use price gaps between income assets and closed-end funds rather than simply tracking a specific index. The CEFZ ETF should be considered on the basis of an understanding of its distribution history, cost structure, liquidity and changes in underlying fund discounts.