Maximizing Income: Exploring VanEck’s ETF Investment Options

VanEck, a well-known asset management firm, has shed light on the rapidly changing landscape of income investing, especially considering the fluctuations in interest rates. The firm emphasizes various exchange-traded funds (ETFs) aimed at meeting differing investment needs and preferences by providing exposure to both conventional and niche market sectors.

VanEck’s Varied ETF Offerings

VanEck’s collection features a variety of income-targeted ETFs, each focused on distinct market sectors. The VanEck CLO ETF (CLOI) and the VanEck AA-BB CLO ETF (CLOB) are actively managed funds that invest in investment-grade floating rate CLOs and mezzanine CLOs, respectively. These funds seek to offer investors opportunities within the evolving collateralized loan obligation market.

For those looking for high-yield bonds, the VanEck Fallen Angel High Yield Bond ETF (ANGL) provides access to higher quality high-yield bonds initially rated as investment-grade. Meanwhile, the VanEck BDC Income ETF (BIZD) serves as a liquid alternative to private credit, which has traditionally been available only to institutional or high-net-worth individuals.

Specialized Income Approaches

VanEck also addresses the needs of investors seeking unique exposure through the VanEck Preferred Securities ex Financials ETF (PFXF), which omits traditional financial firms while still focusing on yield. The VanEck IG Floating Rate ETF (FLTR) offers access to floating rate notes with low interest rate duration and higher coupons, making it suitable for those dealing with a fluctuating interest rate environment.

Investors with a keen interest in the energy sector may want to investigate the VanEck Energy Income ETF (EINC), which concentrates on American companies in the midstream energy sector, including Master Limited Partnerships (MLPs). This ETF aims to generate income from this vital industry segment.

High Dividend and Global Exposure

The VanEck Durable High Dividend ETF (DURA) caters to investors in search of long-term dividend opportunities, focusing on valuation and financial stability, backed by research from Morningstar. Additionally, the VanEck International High Yield Bond ETF (IHY) provides access to below-investment-grade corporate bonds issued by non-U.S. corporations in key domestic or Eurobond markets.

For those interested in U.S. mortgage real estate investment trusts, the VanEck Mortgage REIT Income ETF (MORT) is designed to provide income benefits from this asset class. The VanEck Moody’s Analytics BBB Corporate Bond ETF (MBBB) and the VanEck Moody’s Analytics IG Corporate Bond ETF (MIG) utilize a quantitative approach to select bonds with appealing valuations and reduced downgrade risks, concentrating on investment-grade and BBB-rated bonds.

According to VanEck, these ETFs offer investors a thorough suite of options to maneuver through the complexities of income investing in the current economic landscape.

Image source: Shutterstock