BIZD
(VanEck BDC Income ETF) is an exchange-traded fund (ETF) managed by
VanEck. The ETF seeks to track the performance of the MVIS US Business
Development Companies Index, which is a benchmark that tracks the
performance of business development companies (BDCs).
BDCs are
companies that provide financing and investment opportunities to small
and mid-sized businesses, often in the form of debt or equity
financing. BDCs typically operate as regulated investment companies
(RICs) and must distribute at least 90% of their taxable income to
shareholders in the form of dividends.
As of September 2021,
the BIZD ETF had total net assets of around $550 million and was
invested in a diversified portfolio of BDCs. The fund's holdings are
primarily focused on BDCs that are publicly traded, and the portfolio
is diversified across a range of sectors, including technology,
healthcare, and consumer goods.
In terms of performance, BIZD
has delivered solid returns over the long term, with a focus on
generating income through dividends. The ETF's focus on BDCs may make
it a suitable option for investors who are seeking exposure to the
small and mid-sized business sector in the U.S.
Investors
should keep in mind that like all investments, BIZD carries risks,
including the risk that individual BDCs in the portfolio may
experience declines in their financial performance or face regulatory
challenges. Additionally, the ETF charges an expense ratio of 9.41%,
which is higher than the average expense ratio for ETFs in the
income-focused sector. Investors should carefully consider their
investment objectives and risk tolerance before investing in BIZD or
any other income-f
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