High Yield Spotlight

Can investors capture both the high growth potential within a sector AND an above average yield at the same time? The answer for most funds that write covered calls is probably not, but the BlackRock Science & Technology Trust II (BSTZ) is constructed in such a way that the answer might actually be yes.

In last week's report, I made mention of the largest MLP ETF in the marketplace, the Alerian MLP ETF (AMLP). Just like the broader energy sector, MLPs have beaten up throughout 2020, but is the worst of the energy sector bear market behind us and is this an opportunity to buy low and capture a double-digit yield?

When it comes to high dividend yields in the energy sector, one ETF stands above all others - the Infracap MLP ETF (AMZA). The fund is fraught with risk, but given the beatdown in the sector, it’s worth revisiting the idea to see if there’s enough value to warrant giving it another look.