3 Artificial Intelligence Investments Offering Returns of Up to 9.1%

Despite concerns in the market, the stock market is experiencing a rally with potential relief on the horizon for bonds and tech stocks. With 10-year Treasury rates expected to decrease due to a slowing economy and labor market, investors are looking for ways to capitalize on this potential bullish trend.

One strategy gaining attention is investing in closed-end funds (CEFs) that sell covered calls on tech holdings. These funds can use leverage to sell options and generate higher yields, offering discounts of up to 17% and averaging a 7.8% yield. Funds like the Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) and the BlackRock Science and Technology Term Trust (BSTZ) focus on tech-heavy Nasdaq 100 stocks and companies with rapid growth potential in the science and technology sectors, respectively.

The Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) offers exposure to AI companies and other technology opportunities, leveraging debt to amplify its portfolio for higher returns. While AIO may lag behind ETF competition, its current 7% discount and term trust expiration in 2031 present potential opportunities for investors.

Overall, these CEFs provide a secure and systematic way for investors to generate income during market volatility. By diversifying their portfolios with different strategies and focuses, investors can position themselves to benefit from potential market rallies in the future. With the potential for discounts and higher yields, investors can navigate the market with confidence and manage risks effectively.