The VanEck BDC Income ETF (BIZD) is currently living out the tension of an anthem from the popular rock band Queen. And it is overdue, owing to what I call the process of “pulling returns forward.” That’s where a good concept in an exchange-traded fund (ETF) is the target of a rush of demand for the theme it invests in — to the point where it cannot possibly keep up with expectations. That leaves a lot of proverbial bag-holders.
While the ETF provides a massive yield, it is operating in the shadow of the SaaS-pocalypse. That name was created just this month, when the market had the sudden realization that artificial intelligence (AI)-driven tools are beginning to cannibalize the enterprise software market, where many business development companies (BDCs) have billions in loans.
