PCEF June Gains Driven by Specialized Credit, EM Debt

Invesco CEF Income Composite ETF (PCEF) posted gains in June as rallies in specialized credit and emerging-market debt lifted several of its largest holdings.

PCEF is a fund-of-funds that tracks the S-Network Composite Closed-End Fund Index and held 107 underlying closed-end funds as of July 2, 2026. The portfolio includes taxable investment-grade fixed income, high-yield bonds and equity option-writing strategies.

Highland Income Fund (HFRO) was the largest contributor in June, returning 7.94%. With an average weight of 1.23% in the ETF, HFRO added about 0.09 percentage point to PCEF’s overall performance. Morgan Stanley Emerging Markets Domestic Debt Fund (EDD) returned 12.09% on a 0.43% weight. Templeton Emerging Markets Fund (EMF) had roughly a 0.36% weight and added about 0.02 percentage point.

Sector-specific closed-end funds also contributed. BlackRock Health Sciences Trust (BME) returned 8.07% on a 0.59% weight. BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI) returned 6.34% and contributed about 0.04 percentage point.

The index PCEF follows is rebalanced and reconstituted quarterly, which removes underperforming funds and reweights the portfolio on a scheduled basis. PCEF’s monthly return is the combined result of many managers and strategies across its holdings rather than the performance of a single fund.

PCEF reported a 30-day SEC yield of 9.57% and a 12-month distribution rate of 7.63%. The fund carries a net expense ratio of 2.71%, which includes a 2.26% acquired fund fee tied to the costs of holding other funds.

Invesco manages the ETF. VettaFi LLC provides the index under license and receives a licensing fee; VettaFi does not issue, sponsor, endorse or market PCEF and has no role in the ETF’s administration.