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Harry Domash, Online Investing | Exchange-traded funds offer positive returns in


Trader Craig Esposito works on the floor of the New York Stock Exchange, Friday, Dec. 28, 2018. Stocks are opening higher Friday as U.S. markets try to maintain the momentum from a late-day rally on Thursday. (AP Photo/Richard Drew)

The stock market has been weak lately, so say the least. Nevertheless, 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. What’s more, they are paying monthly or quarterly dividends equating to 9% to 16% dividend yields.

Don’t believe me? Here’s the list.

• VanEck BDC Income ETF (ticker: 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 publicly traded BDCs. It has returned 20% year to date, 16% for 12 months, and averaged 21% annually for three years. It’s paying quarterly dividends equating to a 10.5% 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 19% year to date, 18% for 12 months and averaged 11% annually for three years. It’s paying quarterly dividends equating to a 10.8% 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 15% year to date, 13% for 12 months, and averaged 10% annually for three years. Pays monthly dividends equating to a 9.0% 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 18% year to date, 24% for 12 months, and averaged 9% annually for two years (May 2021 IPO). Pays monthly dividends, a16.6% yield.

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

Harry Domash of Aptos publishes the Winning Investing and the Dividend Detective websites. Contact him at www.winninginvesting.com or Santa Cruz Sentinel, 318 Encinal St., Santa Cruz, CA 95060. To see previous Domash columns, visit santacruzsentinel.com/topic/Harry_Domash.



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