Exploring Income Investment Opportunities with VanEck ETFs
Ted Hisokawa Oct 03, 2024 03:45
Discover VanEck's diverse range of income-focused ETFs, offering strategic opportunities across various market segments, including CLOs, high-yield bonds, and mortgage REITs.
VanEck, a prominent asset management firm, has provided insights into the rapidly evolving landscape of income investing, particularly in the context of changing interest rates. The firm highlights various exchange-traded funds (ETFs) designed to cater to different investment needs and preferences, offering exposure to both traditional and specialized market areas.
VanEck's Diverse ETF Offerings
VanEck's portfolio includes a range of income-focused ETFs, each targeting specific market segments. The VanEck CLO ETF (CLOI) and the VanEck AA-BB CLO ETF (CLOB) are actively managed funds that offer investments in investment-grade floating rate CLOs and mezzanine CLOs, respectively. These funds aim to provide investors with opportunities in the dynamic collateralized loan obligation market.
For those interested in high-yield bonds, the VanEck Fallen Angel High Yield Bond ETF (ANGL) gives access to higher quality high yield bonds, initially issued with investment-grade ratings. Meanwhile, the VanEck BDC Income ETF (BIZD) offers a liquid alternative to private credit, traditionally accessible only to institutional or high-net-worth investors.
Specialized Income Strategies
VanEck also caters to investors seeking differentiated exposure through the VanEck Preferred Securities ex Financials ETF (PFXF), which excludes traditional financial companies while maintaining yield. The VanEck IG Floating Rate ETF (FLTR) provides access to floating rate notes with minimal interest rate duration and higher coupons, ideal for those navigating a volatile interest rate environment.
Investors interested in the energy sector can explore the VanEck Energy Income ETF (EINC), which focuses on American companies within the midstream energy segment, including Master Limited Partnerships (MLPs). This ETF seeks to generate income from this crucial industry sector.
High Dividend and International Exposure
The VanEck Durable High Dividend ETF (DURA) is designed for those pursuing long-term dividend potential, emphasizing valuations and financial health, supported by Morningstar research. Additionally, the VanEck International High Yield Bond ETF (IHY) offers access to below-investment-grade corporate bonds issued by non-U.S. corporations in major domestic or Eurobond markets.
For exposure to U.S. mortgage real estate investment trusts, the VanEck Mortgage REIT Income ETF (MORT) aims to deliver income benefits from this asset class. The VanEck Moody’s Analytics BBB Corporate Bond ETF (MBBB) and VanEck Moody’s Analytics IG Corporate Bond ETF (MIG) employ a quantitative approach to select bonds with attractive valuations and lower downgrade risks, focusing on investment-grade and BBB-rated bonds.
According to VanEck, these ETFs provide investors with a comprehensive suite of options to navigate the complexities of income investing in the current economic climate.
Image source: Shutterstock