Business Development Companies

Investors seeking greater income generation may turn to a number of alternative investments and exchange traded funds that can provide attractive yields. For instance, investors who want to add a little more dividend into their mix can consider master limited partnerships, or MLPs. To qualify as an MLP, the companies pass through at least 90% […]

As more seek out income-generating investments, investors can take a look at alternative high-yielding strategies like business development companies and related exchange traded funds that provide exposure to further U.S. growth and a potential hedge against rising interest rates. BDCs are a good play on the growing middle America. “One problem we see is the […]

After years of expanding credit, some investors are growing concerned over business development companies. However, the sector and BDC-related exchange traded funds may still have a couple of good years left in them. Oppenheimer & Co. analysts argue that it is too early to “cry wolf” about BDCs as more investors are concerned about the […]

When searching for a high-yield bond option, investors can choose from a growing pool of exchange traded fund strategies to generate income. For starters, the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) has a 5.68% 30-day SEC yield, and iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) has a 5.24% 30-day SEC […]

The lesser-known and relatively undervalued business development companies are generating big dividends. Investors can gain exposure to the high-yielding assets through exchange traded fund and exchange traded note options. For instance, the Market Vectors BDC Income ETF (NYSEArca: BIZD) has a 8.64% 12-month yield. Additionally, the exchange traded note UBS E-TRACS Wells Fargo Business Development […]

Fixed-income investors may be wary about the negative effects of a rising rate environment. However, in the equities space, exchange traded funds that follow business development companies may be more insulated from rate risk and offer some attractive yields. For instance, the Market Vectors BDC Income ETF (NYSEArca: BIZD) has a 8.52% 12-month yield. Additionally, […]

With much of today’s market chatter being tied to the Russell Index re-constitution, ETF issuer Market Vectors recently brought to our attention a nuance that is tied to this year’s re-balance that will affect a certain business segment. BDC’s, or “Business Development Companies” have not been well regarded it seems by index companies in terms […]

After another rush to bonds this year, some argue that debt assets are beginning to look less attractive. Instead, fixed-income investors can consider alternative assets and related exchange traded funds to get their yield fix. “There’s just no value in the bond market,” Jeffrey Kleintop, LPL Financial’s chief market strategist, said at the Investment Management Consultants […]

High-yielding business development company exchange traded funds dipped Tuesday as Russell Indexes announced it will join S&P Dow Jones Indices in booting BDCs from its indices. The Market Vectors BDC Income ETF (NYSEArca: BIZD), which tracks U.S.-listed BDCs, was down 0.4% Tuesday. Additionally, BDC-related exchange traded notes, E-TRACS Wells Fargo Business Development Index ETN (NYSEArca: […]

Business development company-related exchange traded funds are weakening after S&P Dow Jones Indices decided to remove BDCs from its U.S. indices. The Market Vectors BDC Income ETF (NYSEArca: BIZD), which tracks U.S.-listed BDCs, has dropped 1.6% over the past week. Additionally, BDC-related exchange traded notes, E-TRACS Wells Fargo Business Development Index ETN (NYSEArca: BDCS) and […]

As investors seek out ways to augment income portfolios, business development company exchange traded funds have popped up on investors’ radars. For instance, the Market Vectors BDC Income ETF (NYSEArca: BIZD), which tracks U.S.-listed BDCs, shows a distribution yield of 6.93%. [Making Sense of Acquired Fund Fees in BDC ETFs] Additionally, the E-TRACS Wells Fargo […]

As the U.S. economic engine revs up, investors are becoming more comfortable with riskier small-cap stocks, piling into high-yield business development companies and related exchange traded funds. In 2013, investors allocated $4.1 billion to publicly traded business development corporations, the most since 2007, reports Lisa Abramowicz for Bloomberg. “It’s going to continue to attract a […]

No longer is an investor’s search for yield confined to stocks and U.S. government bonds. The exchange traded products industry has helped drive the changing landscape of income investing by offering a growing number of income-generating instruments, many of which have unique themes and concepts. Income investors can now use ETFs to tap a plethora […]

Exchange traded funds that cover small-capitalization equities may include exposure to business development companies. However, investors should not be intimidated by the higher “prospectus expense ratio.” According to Securities and Exchange Commission regulatory rules, funds are required to include in their prospectus expense ratio the pro-rata – a fraction every shareholder is assigned equal to […]

Business development companies (BDCs) are firms that help small, early-stage companies with financing needs. While BDCs look like venture capital or closed-end investment trusts on the outside, they are actually publicly traded instruments with substantial income potential. While gaining exposure to small, private companies they otherwise would not have access to, investors have been drawn […]

Exchange traded funds that track business development companies can provide a robust yield boost to an income-oriented investment portfolio even in a rising rate environment. BDCs are affected by the internal health of the U.S. economy, and interest rates usually rise with an improving economy, writes Shawn Blau for Forbes. The BDC industry has also […]