One area where BDCs can improve on in an effort to capture more assets from investors is fees. “Fees need to decline, making BDCs a more competitive product in the market and further aligning the incentives of management and shareholders,” Wells Fargo said in the note.
BIZD shows a net expense ratio of 8.33%, but the umber includes something called acquired fund fees and expenses that are baked into the performance of the underlying assets, Barron’s reported. The ETF’s management fee is 0.4%.
Market Vectors BDC Income ETF
ETF Trends editorial team contributed to this post.