3 BlackRock ETFs to Buy Before 2026 (Over 16% Yield!)
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iShares Gold Trust (IAU) is up 57.84% year-to-date as central banks continue buying gold and investors rotate from low-yield Treasuries.
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iShares Global Consumer Staples ETF (KXI) has returned 7.4% annually since late 2006 with much lower drawdowns compared to the S&P 500.
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iShares 20+ Year Treasury Bond Buywrite Strategy ETF (TLTW) offers a 16.58% monthly dividend yield now that the yield curve has normalized.
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Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
Interest rate cuts are finally materializing, and growth is expected to slow, with 2026 expected to be a policy transition year. BlackRock ETFs like iShares Gold Trust (NYSEARCA:IAU), iShares Global Consumer Staples ETF (NYSEARCA:KXI), and iShares 20+ Year Treasury Bond Buywrite Strategy ETF (BATS:TLTW) are looking increasingly attractive. This is because many investors are preparing to move out of Treasuries due to falling yields, but are demanding downside risk protection at the same time.
The three ETFs we will be discussing today have this characteristic while giving investors exposure to the stock market. Buying them before 2026 arrives will get you ahead of the curve before more investors pile into defensive + dividend themes in the coming months.
Focusing on BlackRock’s iShares brand can be a good idea, as this is the world’s largest ETF franchise. BlackRock has plenty of experience with ETFs. You often get lower fees, far more liquidity, and the best tax treatment possible.
On top of that, these ETFs are unlikely to close. If you want to buy and hold for the long term, going with a major issuer is a must.
The iShares Gold Trust gives you exposure to physical gold. Gold prices have been surging, and they’re turning into an essential asset to have in your portfolio. It can now serve multiple purposes at once in the current environment. Soaring prices mean you get solid upside potential without increasing your exposure to tech stocks that may plateau next year. Moreover, trends are likely to continue as central banks have continued buying gold.
Some of the most bullish expectations for gold were bested by increasing demand for gold. Will the de-dollarization trend continue forever? Probably not, but it is unlikely to hit a wall anytime soon. IAU is up 57.84% year-to-date.
IAU can slow down if central banks stop buying gold, though the long-term uptrend is solid. If interest rate cuts continue, gold has the momentum to keep rallying as investors rotate away from low-yield Treasuries to gold as “liquid” holdings.
IAU has an expense ratio of 0.25%, or $25 per $10,000.
The iShares Global Consumer Staples ETF is a passively managed ETF that gives you exposure to global companies that make consumer products. It has been one of the most stable names in the entire stock market.
KXI seeks to track the performance of the S&P Global 1200 Consumer Staples (Sector) Capped Index. The fund draws from a universe of 1,200 global stocks selected by S&P, focusing specifically on companies in the consumer staples sector.
You’re unlikely to get terrific returns from KXI stock, but that shouldn’t scare you away. Because, on the flip side, you get excellent safety. If you have high-risk holdings in your portfolio, it is a very good idea to buy ETFs like KXI to add ballast for when the pendulum starts swinging the other way.
KXI’s drawdowns have been much lower compared to the S&P 500. You get a very stable and modest uptrend. Since its inception in late 2006, it has returned 7.4% annually. That comfortably keeps you ahead of inflation while giving you much-needed safety.
KXI is the sort of stock you should buy if you have a hunch that the market is topping out and then rotate back out to more aggressive names as stocks get cheaper.
In the meantime, you get a 2.37% dividend yield. The expense ratio is 0.39%, or $39 per $10,000.
The iShares 20+ Year Treasury Bond Buywrite Strategy ETF must look like a horrible investment at first glance. And that is true to some extent if you’ve bought it when interest rates were extremely low in the post-pandemic era. However, in the current environment, TLTW looks better and better.
This ETF holds the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) and then writes call options on it to generate more income. The TLT ETF itself tracks the performance of government bonds with remaining maturities of 20 years or more.
The equation is that if TLT holds steady or rises, TLTW can capture a portion of that upside while giving you an incredible 16.58% yield. Dividends are distributed monthly.
It hasn’t been able to execute on that ideal “equation” in the past few years due to interest rate hikes. Higher interest rates caused Treasuries with a shorter maturity to yield as much, if not more, than those with longer maturities. This is what you call an inverted yield curve. From mid-2022 to mid-2024, that’s exactly what the market went through. Remember, TLT holds 20-year-plus Treasuries. These bonds naturally fell in value as short-term Treasuries yielded more.
The pendulum is now swinging back. TLTW has been trading sideways this year due to interest rates being cut. As a bonus, the yield curve is no longer inverted. Long-term bonds are now getting much more attractive.
Thus, buying the dip on TLTW now can get you that fat yield plus some upside. If a recession comes, it will likely bring emergency rate cuts, which can make TLTW surge.
The expense ratio is 0.35%, or $35 per $10,000.
The fact is there are two totally different investment paths you can take right now. And while either can make you some money, choosing the right one at the right time can mean the difference between just getting by and getting truly rich. Most people don’t even realize the difference, and that mistake can be devastating for your portfolio. Whether you’re investing $1,000, or $1,000,000 today, learn the difference and put yourself on the right path. See the report.