##  [# ETF Watch: Hedge Fund Manager Plans First ETF](/sections/daily-etf-watch/etf-watch-hedge-fund-manager-plans-first-etf) 

 

# ETF Watch: Hedge Fund Manager Plans First ETF

 

 

 Saba Capital is the latest new player to throw its hat into the ETF space.



 

 

 

 

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[By ETF.com Staff](/contributors/etfcom-staff)

 Dec 27, 2016

 Edited by: ETF.com Staff

 

 

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Saba Capital Management, a New York-based hedge fund manager known for its credit-relative-value strategy, is looking to enter the ETF space for the first time with an offering that would focus on closed-end funds.

Exchange-Traded Concepts—the third-party issuer behind the “ETF-In-A-Box” solution—filed the prospectus for [Saba Interest Rate Hedged CEF ETF (CEFS)](https://www.sec.gov/Archives/edgar/data/1547950/000139834416021885/fp0023002_485apos.htm) with the Securities and Exchange Commission. Saba Capital is subadvising the fund.

CEFS is an actively managed ETF designed to capture high yield by investing in a range of securities covering a wide range of maturities.

The ETF will typically own securities issued by closed-end funds—including mortgage-backed, asset-backed, inflation-protected securities, equities, investment-grade and high-yield debt, etc.—as well as securities that hedge against the fund’s exposure to interest rates, according to the prospectus.

CEFS would enter a segment populated by ETFs that include the $640 million [PowerShares CEF Income Composite Portfolio (PCEF)](https://www.etf.com/PCEF) and the $115 million [YieldShares High Income ETF (YYY)](https://www.etf.com/YYY).

In 2016, these asset allocation ETFs that look to closed-end-funds for yield delivered solid performance, as seen in the chart below:

![](/sites/default/files/images/1_dew_12_27_cef_etfs.jpg)

*Chart courtesy of* [*StockCharts.com*](https://www.stockcharts.com/)

No fees were disclosed in the filing. CEFS is expected to list on Bats, which owns ETF.com.

*Contact Cinthia Murphy at* [*cmurphy@etf.com*](mailto:cmurphy@etf.com)



 

 

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