Best Of
Best BDC ETFs in 2026
ETFs that hold baskets of business development companies for high-yield exposure to private-credit lending.
Data updated July 2026 · 4 ETFs
Who this page is for
Best for
- Yield hunters who want diversified exposure to business development companies in one ticker
- Investors who like private-credit income but don't want to pick individual BDCs
- Income portfolios that can absorb higher volatility for a 7-11% yield
Not a fit for
- Investors uncomfortable with the layered fees BDC ETFs carry (fund fee plus the BDCs' own expenses)
- Anyone needing downside protection in a credit crunch — BDCs are economically sensitive
- Fee-minimizers — owning a few BDCs directly avoids the wrapper's acquired-fund expenses
Analysis
Business development companies (BDCs) lend to and invest in small and mid-sized private businesses, and they must distribute most of their income — which is why the sector yields so richly. A BDC ETF packages a basket of them (Ares, Blackstone, FS KKR, Main Street, and peers) into one diversified ticker, sparing you the work of analyzing each lender's credit book. The universe of true BDC ETFs is small — essentially VanEck's BIZD and Putnam's PBDC — so this is a short, focused list. Two caveats matter. First, expense ratios look enormous because SEC rules require the ETF to report the underlying BDCs' own operating costs as "acquired fund fees"; the fund-level management fee is far smaller. Second, BDCs are leveraged lenders, so the group is economically sensitive and can fall hard in a credit downturn. For diversified private-credit income, though, a BDC ETF is the simplest single-ticker option.
Top picks
Top BDC ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated annual, monthly, and weekly income based on the average yield of 8.80% across these 4 ETFs. For illustration only—actual income will vary.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $880 | $73 | $17 |
| $25,000 | $2,201 | $183 | $42 |
| $50,000 | $4,401 | $367 | $85 |
| $100,000 | $8,802 | $734 | $169 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
All 4 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| BIZD | VanEck BDC Income ETF | VanEck | 7.62% | 11.17% | $1.6B | Quarterly |
| PBDC | Putnam BDC Income ETF | Putnam | 10.42% | 6.79% | $281M | Quarterly |
| HBDC | Hilton BDC Corporate Bond ETF | Hilton Capital Management, LLC | 4.88% | 0.39% | $84M | Monthly |
| FBDC | FT Confluence BDC & Specialty Finance Income ETF | First Trust | 12.29% | 12.44% | $34M | Monthly |
Frequently asked questions
What are the best bdc ETFs?
This page lists the top 4 ETFs in this category ranked by key metrics. The list includes funds from issuers like VanEck, Putnam, Hilton Capital Management, LLC, First Trust and more.
How often is this list updated?
The data on this page is refreshed regularly using the latest available distribution rates, expense ratios, and AUM figures. Last updated July 2026.
What is the average yield of these ETFs?
The average distribution yield across the 4 ETFs on this list is 8.80%. Individual yields range from 12.29% to 7.62%.
What is a BDC ETF?
It is an ETF that holds a basket of business development companies — publicly traded firms that lend to private, middle-market businesses. Because BDCs distribute most of their earnings, a BDC ETF delivers a high, diversified income stream in one ticker.
Why do BDC ETFs show such high expense ratios?
SEC rules require the ETF to include the underlying BDCs' own operating expenses as "acquired fund fees and expenses." That inflates the reported expense ratio, but it is not an extra fee the manager charges — the fund's own management fee is a fraction of the headline number.
Should I buy a BDC ETF or individual BDCs?
A BDC ETF gives instant diversification across many lenders and removes single-company credit risk, at the cost of the acquired-fund expense drag. Buying two or three individual BDCs directly avoids that wrapper cost but concentrates your risk in a handful of credit books. It's a diversification-versus-cost trade-off.
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