BlackRock Science and Technology Term Trust offers pre-IPO exposure to high-profile tech firms like Anthropic. BSTZ focuses on total return and income, targeting long-term capital appreciation in U.S. and non-U.S. science and technology equities. As a closed-end fund, BSTZ trades at a discount or premium to NAV (currently a discount), thus creating potential for additional returns if the discount narrows.
The BlackRock Science and Technology Term Trust (NYSE:BSTZ) is an unusual tech vehicle: a closed-end fund with a 2031 liquidation date, an expense ratio near 1.4%, and over 30% of its portfolio invested in private, pre-IPO companies.
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BlackRock Science & Technology Term Trust (NYSE:BSTZ) is a closed-end fund (CEF) that combines a venture-stage technology portfolio with a covered call writing strategy to deliver monthly income.
BSTZ has dramatically shifted its portfolio, now heavily concentrated in private, illiquid technology and AI investments. BSTZ's private assets, including Anthropic at 15% of holdings, now comprise nearly half the portfolio, heightening liquidity and valuation risks. Distribution and management changes, along with increased private exposure, have altered BSTZ's risk profile and diverged from its original mandate.
BlackRock Science and Technology Term Trust (NYSE:BSTZ) has gained 57.79% over the past year, with shares recently touching $23.92.
There are three stories moving markets right now:
BlackRock Science & Technology Term Trust (NYSE:BSTZ) attracts investors with a straightforward promise: monthly income from a professionally managed tech portfolio, enhanced by a
BSTZ: High Growth Potential With Monthly Income, 11% Discount To NAV
BSTZ remains a top AI-driven closed-end fund, outperforming the S&P 500 and NASDAQ 100 over the past six months. BSTZ's portfolio now exceeds 30% private holdings, with increased exposure to innovative tech and AI hardware, but this raises valuation and liquidity uncertainties. The fund trades at a persistent discount to NAV, allowing for value-enhancing strategies like share repurchases, though the discount reflects market skepticism.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.