BIZD: Assessing Investor Choices In The BDC ETF Space

Binary Tree Analytics5.6K FollowersFollow5ShareSavePlay(7min)CommentsSummaryVanEck BDC Income ETF is the largest, most liquid BDC ETF but is highly concentrated in a few names.Recent market dislocation has driven BDC and alternative asset manager equities down 11–12%, raising questions about credit quality and diversification.BIZD’s top three holdings account for over 45% of assets, limiting true diversification and making it a concentrated bet rather than a broad BDC play.Investors seeking genuine diversification may be better served by constructing an equal-weighted portfolio of top BDCs instead of relying on BIZD. J Studios/DigitalVision via Getty Images Thesis The past weeks have been characterized by steep drops in BDC equity prices, with the market swoon taking its toll on alternative asset managers as well. In today's article we are going to look atThis article was written byBinary Tree Analytics5.6K FollowersFollowWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.