When interest rates are high and the broader stock market feels top-heavy, income-oriented investors almost always migrate toward the hidden corners of private credit. But let’s be crystal clear about this. They often migrate there because someone in the professional advisory space directed them to it. And the vehicle of choice is usually the VanEck BDC Income ETF (BIZD).
BIZD tracks business development companies (BDCs), publicly traded entities that function as closed-end investment funds, lending capital directly to middle-market private corporations. Because BDCs are legally mandated to distribute at least 90% of their taxable income to shareholders, BIZD currently pays a dividend distribution yield of over 13%.
