BlackRock Runs a Tech Fund That Pays 6% Monthly, Is Up 39% This Year, and Trades at a 6% Discount

BlackRock manages two closed-end funds, BST and BSTZ, both focused on tech stocks. BST offers a 5.9% forward yield and has returned 31.28% so far this year, while BSTZ boasts a higher 6.2% yield and a 39% gain year-to-date. BSTZ is set to dissolve in June 2031, which creates a potential structural advantage as its 6.2% discount is intended to close upon liquidation.

The fund holds a diversified portfolio of AI-adjacent public companies, including Databricks, SpaceX, and Anthropic, but leans more toward private tech investments than BST does. Buying BSTZ now at a 6.2% discount to net assets positions investors to capture a potential tailwind at liquidation, in addition to the fund's higher yield and portfolio tilt toward emerging private tech companies.