Kingsbarn Invests in BDCs, REITS with 2ND ETF 

Kingsbarn Capital Management, which is wholly owned by Kingsbarn Realty Capital, recently launched its second exchange-traded fund (ETF), The Kingsbarn Dividend Opportunity ETF (DVDN). 

The ETF is actively managed and targets equities issued by residential and commercial mortgage real estate investment trusts (REITs) and business development companies (BDCs). 

DVDN’s portfolio managers model and monitor about 75 companies across five subsectors using proprietary bottom-up financial forecasts. Managers will typically select 12-18 stocks issued by MREITs, CREITs, and BDCs. 

Mortgage REITs and BDCs have low market correlations in general. They’ve also consistently distributed dividends between 8% and 10%. 

The ETF comes at a time when many investors believe there is a significant buying opportunity in the REIT market. Rising interest rates, decreasing prices, and increased vacancies may result in more commercial real estate sales in the coming months. 

“Although equity and interest rate markets have been somewhat volatile of late, residential and commercial mortgage REIT and BDC dividends have been relatively stable and, in our opinion, should remain resilient,” said Jim Fowler, CIO at Las Vegas, NV-based Kingsbarn Capital Management and DVDN co-portfolio manager. 

The ETF is co-managed by Fowler and Ignatius Chiang.