Blue Owl Capital Corp

Main Street Capital

Morgan Stanley Direct Lending Fund

Capital Southwest

Trinity Capital

Bain Capital Specialty Finance Inc

VanEck Vectors BDC Income ETF

BIZD tracks a market cap-weighted index of US BDC companies whose principal business is to invest in, lend capital to, or provide services to privately held companies.

Alerian MLP ETF

Energy Transfer LP Unit

SPDR Gold Trust

JPMorgan Equity Premium Income ETF

Realty Income Corp

ALPS Active REIT ETF

Schwab US Dividend Equity ETF

iShares Silver Trust

Virtu Financial

Utilities Select Sector SPDR Fund

Successful dividend investing requires proper diversification, not just picking stocks. Broadly diversified ETFs may not be enough for sufficient diversification, or at least may meaningfully underperform an intelligently weighted portfolio. We share three undervalued and high-yielding dividend stocks that are expected to thrive amidst the shifting macroeconomic and geopolitical landscapes expected to unfold in 2024.

3 Top High-Yield Dividend Stocks For 2024

ARK Innovation ETF

Amplify Transformational Data Sharing ETF

Vanguard Total International Bond ETF

Manager Directed Portfolios - iM DBi Managed Futures Strategy ETF

iShares MSCI Emerging Markets ex China ETF

Fidelity Blue Chip Growth ETF

SPDR S&P China ETF

iShares Core MSCI Emerging Markets ETF

iShares Core S&P 500 ETF

Kraneshares Dynamic Emerging Markets Strategy ETF

AdvisorShares Pure US Cannabis ETF

Wisdomtree US Quality Growth Fund

Invesco QQQ

SPDR S&P 500 ETF Trust

iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

Vanguard S&P 500 ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard FTSE Emerging Markets ETF

SPDR S&P Biotech ETF

Technology Select Sector SPDR Fund

Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, we look at ETF strategies that have exploded in popularity in 2023, and whether they will continue to gain momentum in the year ahead.

These ETF strategies were big winners in 2023. Here's where one CFRA analyst sees them going next year.

VanEck Fallen Angel High Yield Bond ETF

VanEck China Bond ETF

Vaneck CLO ETF

VanEck Morningstar High Dividend ETF

VanEck Energy Income ETF

VanEck J.P Morgan EM Local Currency Bond ETF

VanEck Investment Grade Floating Rate ETF

VanEck Green Bond ETF 

VanEck High Yield Muni ETF

VanEck Emerging Markets High Yield Bond ETF

VanEck International High Yield Bond ETF 

VanEck Dynamic High Income ETF

VanEck Vectors Intermediate Muni ETF

VanEck Vectors Muni Allocation ETF

Mobeus Income & Growth 2 VCT PLC

VanEck Vectors Long Muni ETF

VanEck Mortgage REIT Income ETF

VanEck Preferred Securities ex Financials ETF

VanEck Short High Yield Muni ETF

VanEck Vectors Short Muni ETF

VanEck HIP Sustainable Muni ETF

VanEck CEF Municipal Income ETF 

Yields have reset higher across fixed income markets, leaving bonds well positioned in a range of different economic and interest rate scenarios in 2024. Introduction to Income Investing Income investing is a strategy that aims to generate a steady stream of income from investments, typically through interest payments or dividends.

Income Investing Playbook 2024: Navigating the New Interest Rate Regime

The VanEck BDC Income ETF tracks the performance of publicly traded business development companies. BIZD has limited diversification, with only 26 companies in its portfolio and a heavy skew towards the top holdings. The management fee of 0.4% is reasonable considering the risky nature of BDCs, but the yield offered by BIZD is not as attractive as other BDC peers.

BIZD: Less Risky Way To Play The BDC Segment

BIZD has outperformed most other asset classes and indexes in 2023. BIZD's dividends have seen double-digit growth due to past Federal Reserve hikes and widening credit spreads, but growth is stalling. Default rates are rising, which could decrease earnings and increase investor risk for BIZD.

BIZD: Strong 10.7% Dividend Yield, Improved Growth Prospects

Enterprise Products Partners

STAG Industrial

Vanguard Real Estate ETF

REITs, MLPs, and BDCs are very popular among income investors. Each has unique pros and cons. Overall, REITs are likely the most opportunistic today. Here's why.

REITs Vs. MLPs Vs. BDCs: Comparing 3 High Yield Income Vehicles

Business Development Companies (BDCs) offer high yields of over 10% but come with high risk. The VanEck BDC Income ETF is a favorable option for investing in BDCs. The BIZD ETF has performed better than the average BDC portfolio and has a diverse portfolio of 25 BDCs.

BIZD: Reducing Risk In BDC

The VanEck BDC Income ETF offers exposure to US Business Development Companies with a diversified portfolio and a high dividend yield of 11.5%. BDCs provide a high level of income despite what interest rates are doing. BIZD's top holdings consist of well-established BDCs with a track record of high dividend yields and positive total returns, making it an attractive option for income-focused investors.

BIZD: High Sustainable Income From A BDC ETF

Apollo Senior Floating Rate Fund

Panagram Bbb-B Clo Etf

Franklin Senior Loan ETF

iShares Floating Rate Bond ETF

Janus Henderson AAA CLO ETF

Janus Detroit Street Trust-Janus Henderson B-BBB CLO ETF

WisdomTree Bloomberg Floating Rate Treasury Fund

XAI Octagon Floating Rate & Alternative Income Term Trust

Floating rate securities have strong yields, low duration, and have significantly outperformed YTD. There are several strong floating rate funds available to investors. Credit risk varies, but there are options with minimal risk and high yields in the floating rate space.

The Best Floating Rate Funds For Income Investors And Retirees

Ares Capital

Blackstone Secured Lending Fund

FS KKR Capital Corp

Global X MLP & Energy Infrastructure ETF

Business Development Companies enjoy tax advantages and pay out big dividend yields. We take a look at the five biggest BDCs.

Passive Income: 7-13% Well-Covered Yields From The 5 Biggest BDCs

iShares Emerging Markets Dividend ETF

iShares Mortgage Real Estate ETF

Two iShares ETFs are on the list, one focused on real estate and the other on emerging markets. VanEck's ETF, which owns positions in BDCs, has delivered an especially impressive total return this year.

These 3 ETFs Offer Ultra-High-Dividend Yields of 10% or More. Are They Buys?

The word “private” draws investors. It implies an aura of exclusivity; human nature being what it is, the unattainable often lures us in.

Bank on BDCs as Private Credit Standby

By Coulter Regal, CFA, Product Manager In the current market environment where liquidity is highly prized, BDCs present a compelling, liquid alternative to traditional private credit strategies. In the ever-evolving financial landscape, investors are constantly seeking innovative ways to diversify their portfolios and achieve optimal returns.

BDCs: The Liquid Alternative to Private Credit

Brookfield Renewable Partners

Clearway Energy

Enbridge

MPLX

NextEra Energy

TC Energy

W. P. Carey

High yield stocks are a great way to build a passive income snowball and achieve financial independence. We discuss the two key macroeconomic themes that are poised to drive markets as we head into October 2023. We share two top high-yield stocks to profit from these trends.

Top High Yield Stocks To Buy In October 2023

Business development companies are likely to face negative financial growth in the coming years, which could hinder shareholder return. Rate cuts could result in a substantial decrease in earnings for BDCs, while muted portfolio growth exacerbates the challenges. Financial projections offer limited support for the share price, leading to a high risk of underperformance on total returns.

BIZD: Negative Growth May Hinder Shareholder Return

Credit risk is par for the course with many high-yield asset classes and business development companies (BDCs) are no exception. Fortunately, the credit outlook for BDCs is attractive.

BDCs Showing Stout Credit Resilience

Agree Realty

Ares Management

Kinder Morgan

National Retail Properties

ONEOK

Spirit Realty Capital

Williams

There are great deals to be had among dividend stocks despite the tech-fueled market runup. All four picks in this article pay big, well-covered dividend yields to help investors make money while they sleep. They carry diversified and/or essential business models and are undervalued, resulting in potential for strong total returns in addition to income.

4 Hefty Dividends With Up To 10% Yield

Solar Capital

Triplepoint Venture Growth BDC

Warren Buffett has built an empire seeking opportunities across the board. Small- and mid-size businesses define the spirit of the American dream. +10% yield from adopting the Income Method to invest in the heartbeat of the American economy.

Buffett Is Bold On Big Dividends And The American Dream

Arbor Realty Trust

Alexandria Real Estate Equities

Crown Castle International

Hercules Capital

Vici Properties

REITs and BDCs are complementary assets that work well together in a dividend-focused portfolio. REITs are borrowers of debt, while BDCs are lenders of debt. Rising interest rates benefit BDCs and are a headwind for REITs, while falling interest rates have the opposite effect.

REITs Vs. BDCs: A Lesson In Contrarian Investing

High yield investing can be an extremely effective way to compound wealth over the long term. I share some of our favorite quality 7-14% yielding picks of the moment. I also share why high yield investing is such a great approach to long-term investing.

Quality 7%-14% Yields I Am Buying Hand-Over-Fist

Royce Value Trust

What does "safe" mean to you? I don't want a retirement built on hopes that I can sell my shares for more than what I bought them for. These two funds can provide you with plenty of income to help you to achieve financial independence.

2 Great Dividends To Retire In Style And Splendor

BIZD is an ETF which holds BDCs. MORT is an ETF focused on mortgage REITs. Both offer double-digit yields.

BIZD Vs. MORT: All High Income Choices Are Not The Same

UBS ETRACS Wells Fargo Business Development Cmpn Indx ETN 2015-26.4.41 Lkd to Wells Fargo Business Dvlpmnt Indx Ser B

Crescent Capital BDC Inc

Saratoga Investment

With rates rising, the regional banking crisis bothering the lending market and the U.S. economy chugging along, business development companies have every reason to outperform.

Time to Buy Red-Hot Business Development ETFs?

American Tower

AT&T

AT&T 5.35 % Notes 2017-01.11.66 Global

High yield investing - when done right - can be extremely rewarding. We share three high-yielding high-quality stocks that we think have a place in a high-yielding portfolio. We also share two high-yielding stocks that investors may want to avoid right now.

6-10% Yields: 3 High Yielding Stocks To Buy And 2 To Avoid

VanEck BDC Income ETF, an exchange-traded fund focusing on business development stocks, offers a 10.8% dividend yield paid quarterly. The fund's performance is strongly correlated with the state of the American economy. Business development companies typically provide high-interest loans to smaller companies, including startups.

BIZD Can Be A Decent Income Generator If You Are Bullish On The U.S. Economy

News for VanEck Vectors BDC Income ETF ETF (BIZD)