ETF Trends publisher Tom Lydon discussed VanEck Vectors BDC Income ETF (BIZD) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

Investors looking for a high-yield, equity income position may consider Business Development Company (BDC) exposure to complement a traditional income-oriented portfolio.

BDCs are comprised of companies that fund small- to mid-sized private companies, which are usually rated below investment grade or not rated at all.

BDCs should also do relatively well in the kind of environment ahead where many expect an increase in interest rates. Since BDC loans are mostly floating rate, the companies could earn more as rates rise.

Click here to listen to the podcast.

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