Invesco said the PowerShares CEF Income Composite Portfolio is the first ETF designed to provide investors access to a portfolio of closed-end funds. The fund, which will issue monthly distributions, is expected to go ex-dividend on March 15.

It is based on the S-Network Composite Closed-End Fund Index. The fund will normally invest at least 80% of its total assets in securities of funds included in the underlying index. The rules-based index is designed to track the overall performance of a global universe of U.S.-listed closed-end funds.

Underlying index constituents are selected from a universe of approximately 350 closed-end funds and the index is rebalanced on a quarterly basis. To qualify for the index, a closed-end fund must have a stated investment objective of concentration in one of three sectors: taxable investment-grade fixed income, high-yield fixed income or option income; trade on a recognized U.S. stock exchange; have a minimum capitalization value greater than $100 million; have a total annual expense ratio of less than 2%; and have an average daily turnover of more than $500,000 per day for the three months prior to the rebalancing date.