Harry Domash's Winning Investing

ETFs for Positive Returns in This Market

Despite the market's recent ups and downs, some exchange-traded funds (ETFs) have generated mostly double-digit year-to-date, 12 month, and three-year returns.

Even better, I don’t see any signs warning of weakening performance ahead. They are paying monthly or quarterly dividends equating to 3.6% to 16% dividend yields.

Don’t believe me? Here’s the list.

VanEck BDC Income ETF (BIZD)

Business Development Companies (BDCs) provide financing to small and midsize privately-held companies. BDCs don’t pay income taxes as long as they distribute at least 90% of taxable income to shareholders, and meet certain other requirements. This fund replicates an index that tracks the performance of publically-traded BDCs. It has returned 19% year-to-date, 26% over 12-months, and averaged 21% annually over three-years. It’s paying quarterly dividends equating to an 11.3% dividend yield.

First Trust Latin America AlphaDEX Fund (FLN)

Replicates an index that picks 50 Latin America-based stocks based on a variety of share price growth, valuation and fundamental factors. It has returned 9% year-to-date, 13% over 12-months and averaged 9% annually over three years. It’s paying quarterly dividends equating to a 3.6% yield.

First Trust Buy Write Income ETF (FTHI)

Holds equities of all market capitalizations listed on U.S. exchanges and uses a covered call options strategy to generate income. It has returned 14% year-to-date, 19% over 12-months, and averaged 9% annually over three years. Pays monthly dividends equating to a 9.1% dividend yield.

Simplify Volatility Premium ETF (SVOL)

Holds U.S.-based growth- and valued-priced equities and high-quality, short-term fixed income securities. Has returned 16% year-to-date, 28% over 12-months, and averaged 6% annually over two years (May 2021 IPO). Pays monthly dividends, 16.1% yield.

Those are my ideas. But do your own due-diligence. The more that you know about your stocks, the better your results.

published 10/16/23

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