VanEck, a prominent asset management firm, provided insight into the rapidly changing income investment landscape, especially in the context of interest rate changes. The company provides exposure to both traditional and specialized market segments, emphasizing a variety of exchange-traded funds (ETFs) designed to meet a variety of investment needs and preferences.
VanEck’s various ETF products
VanEck’s portfolio includes a variety of income-focused ETFs, each targeting a specific market sector. VanEck CLO ETF (CLOI) and VanEck AA-BB CLO ETF (CLOB) are active funds that invest in investment grade floating rate CLOs and mezzanine CLOs, respectively. The fund aims to provide investors with opportunities in the dynamic mortgage market.
For those interested in high-yield bonds, the VanEck Fallen Angel High Yield Bond ETF (ANGL) provides access to high-quality, high-yield bonds initially issued as investment grade. Meanwhile, the VanEck BDC Income ETF (BIZD) provides a liquid alternative to private credit that has traditionally been accessible only to institutional or high net worth investors.
Specialized Income Strategy
VanEck also meets the needs of 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 bonds with minimal interest rate periods and higher coupons, ideal for those navigating a floating rate environment.
Investors interested in the energy sector can explore the VanEck Energy Income ETF (EINC), which focuses on U.S. companies in the midstream energy sector, including master limited partnerships (MLPs). This ETF aims to capitalize on this important industry sector.
High dividends and international exposure
The VanEck Durable High Dividend ETF (DURA) is backed by Morningstar research and designed for those seeking long-term dividend potential with an emphasis on valuation and financial strength. Additionally, the VanEck International High Yield Bond ETF (IHY) provides access to below-investment grade corporate bonds issued by non-U.S. companies 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 provide income benefits from this asset class. VanEck Moody’s Analytics BBB Corporate Bond ETF (MBBB) and VanEck Moody’s Analytics IG Corporate Bond ETF (MIG) focus on investment grade and BBB rated bonds and use a quantitative approach to select bonds with attractive valuations and low downgrade risk. do.
According to VanEck, these ETFs provide investors with comprehensive options to navigate the complexities of income investing in the current economic environment.
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