BIZD - PBDC Vs. BIZD: Which BDC ETF Is Best For Income Investors And Retirees?
2024-04-17 13:26:06 ET
Summary
- BDCs offer investors strong, growing dividend yields. Performance has been good since inception, strong since the Fed started raising rates.
- PBDC and BIZD both focus on BDCs, and have similar characteristics to these.
- Both are similar to each other, and both are buys, but do have some important differences that investors need to consider.
BDCs are one of the highest-yielding investments right now, with most offering investors double-digit yields with solid growth. The largest ETF in this space is the VanEck BDC Income ETF ( BIZD ), the Putnam BDC Income ETF ( PBDC ) is a newer, smaller alternative. Due to the strong income offered by these ETFs and reader interest, I thought to write an article comparing these two ETFs.
Both funds have broadly similar strategies, characteristics and performance.
Both funds have high credit risk, low interest rate risk, and broadly similar volatility and drawdowns to equity....
PBDC Vs. BIZD: Which BDC ETF Is Best For Income Investors And Retirees?