2 Business Development Companies To Buy Before Mergers And Acquisitions Heat Up
The Federal Reserve's recent rate cut will have a complex impact on business development companies. Many BDCs will face headwinds due to falling net investment income as SOFR begins to fall. MAIN and GAIN's focus on equity investments differentiates them from typical BDCs.
BIZD: A Public Way To Access Private Credit
Business Development Companies offer solid income opportunities by investing in small and medium-sized businesses, providing debt, equity, and management support. The VanEck BDC Income ETF targets high yields by investing in BDCs, giving investors access to private credit markets through public equities. BIZD's focus on financials means it's sensitive to economic changes and interest rate shifts, but it boasts a 30-Day SEC Yield of 10.76%.
BIZD: Revisiting The Fund's Three Largest Constituents
BIZD is one of the only BDC ETFs tracking the MVIS US Business Development Company Index. We revisit BIZD, explaining the fund's expense ratio and revisiting our prior thesis that investing in BIZD's largest holdings was a superior strategy. As interest rate cuts appear to be a near certainty, we touch on BIZD's macroeconomic outlook and update the fund's rating.
Are Rate Cuts Bad News For BIZD ETF?
The Federal Reserve is expected to cut interest rates significantly soon. VanEck BDC Income ETF is heavily exposed to floating rate loans via the investment portfolios of its underlying holdings. We look at the projected impacts to net investment income from rate cuts on each of the BIZD ETF's underlying holdings.
Buy Alert: 3 Undervalued 10% Yields For August 2024
While long-term interest rates are falling in anticipation of Fed rate cuts, there are still some very attractive high-yield opportunities in the market. We discuss 3 that yield 10%+ right now. We compare them and share our take on which is the most attractive right now.
1 ETF I Wouldn't Touch With a 10-Foot Pole
The VanEck BDC Income ETF offers a high dividend yield of 10.4%, but its expense ratio is an astonishing 11.2%. High fees can drastically reduce long-term returns.
BIZD: Diversified BDC ETF With A Solid 11% Yield
VanEck BDC Income ETF offers exposure to high-yielding business development companies with a dividend yield of 10.7%. BIZD provides diversification and avoids company-specific risks for passive income investors. Ares Capital is the largest holding in the ETF, contributing to its quality tilt and stable dividend.
BIZD: A Great Way To Add Exposure To High Yielding BDCs
Since December last year, when I issued a relatively bullish article on BIZD, the ETF has delivered ~ 14% in total returns. While the index level has ticked higher, BIZD still continues to offer a ~10% dividend yield. During this period, BIZD has also become a more enticing risk-reward play.
These 3 Dividend ETFs Are a Retiree's Best Friend
Dividend growth is important, but it's not the only thing to consider when shopping around for income investments. Don't become so future-minded that you're unable to pay for the present.
BIZD: The Least Risky Way To Maintain BDC Exposure
VanEck's BDC Income ETF is a great way to maintain a diverse exposure to the Business Development Company sector. BIZD's currently dividend yield sits at 10.5% and is comprised of both net investment income and net realized gains from its holdings. While interest rate cuts may lead to reduced distributions because of lowered NII per share, the increased volume of borrowers may offset this and boost performance.
Rate Hikes, Rate Cuts? Win Big With These 10% Yields
BDCs play a highly important role in the U.S. economy by providing liquidity to the middle market. You can reap high current income now and when rates fall. I don't trade on the market's whims, I collect income through it.
BIZD: BDCs Are A Sector Buy In A "Higher For Longer" Scenario
Business development companies have benefitted from rising interest rates over the past two years. As sustained inflation prevents the Federal Reserve from lowering borrowing costs, BDCs stand to continue benefitting from an elevated interest rate environment. BIZD is an exchange traded fund that invests in BDCs.
