DNP Select Income Fund: A Rare Exceptional Fund with High Yield and Tax-Efficient Income

The DNP Select Income Fund offers a high 8% dividend yield and has the potential to provide both superior income potential and capital appreciation. It differentiates itself by offering tax-efficient income and a proven track record. The fund's unique investment strategy combines high-quality dividend stocks with tax-loss harvesting and a focus on long-term capital preservation.

The Westwood Salient Enhanced Midstream Income ETF (MDST) has achieved a significant milestone, surpassing $100 million in assets under management. This milestone, reached just over a year after the Fund's launch, underscores the growing demand for innovative income-generating strategies in today's market environment [1].

MDST offers investors targeted exposure to the midstream energy sector, enhanced by a covered-call strategy that seeks to boost income through options premiums. This approach allows investors to participate in the relative stability and cash flow strength of midstream infrastructure companies while seeking additional yield and potential volatility mitigation [1].

The Fund has consistently delivered on its objective of providing a steady stream of income, with an annualized distribution rate of 10.2% [1]. This performance has resonated with both advisors and investors, highlighting the increasing appetite for income-generating solutions.

Ted Gardner, a senior portfolio manager on Westwood’s Energy team, noted, "Crossing $100 million in assets is a significant milestone that underscores the confidence advisors and investors have placed in MDST. Our strategy was built with income investors in mind, and this level of engagement validates our approach" [1].

Parag Sanghani, another senior portfolio manager on the Energy team, added, "We believe MDST’s aim to provide consistent distributions, and the innovative combination of dividend income and options premiums have made it a standout solution for those seeking income without excessive risk. Surpassing $100 million in assets demonstrates that our approach is resonating with the market, and we remain committed to delivering attractive, tax-efficient income with a disciplined investment process" [1].

With energy infrastructure playing a pivotal role in global markets, MDST seeks to provide a diversified, liquid, and tax-efficient strategy for investors seeking both income and exposure to a resilient asset class without the need to file a K-1. The Fund's structure aligns with Westwood’s ongoing commitment to transparency, innovation, and investor-focused strategies [1].

Brian Casey, CEO of Westwood Holdings Group, stated, "We are thrilled to celebrate this milestone for MDST, which not only validates the Fund’s strategy but also reflects the trust and engagement of our clients. As our ETF platform continues to grow, we remain focused on delivering outcome-driven investment solutions that meet the evolving needs of investors. We look forward to building on this momentum" [1].

The performance data as of March 31, 2025, shows the Fund's NAV and market price growth, as well as its 30-day SEC yield, which helps investors compare funds using a consistent method of calculating yield [1].

References:
[1] https://www.nasdaq.com/press-release/westwood-salient-enhanced-midstream-income-etf-nyse-mdst-surpasses-100-million-assets