PBDC: A Compelling Diversified BDC ETF Paying 9.3%

seekingalpha07-26

Nastassia Samal Putnam BDC Income ETF (NYSEARCA:PBDC) is an exchange-traded fund with a focus on the business development company sector. The Putnam BDC Income ETF may be a compelling choice for ...

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The Putnam BDC Income ETF may be a compelling choice for ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707134-pbdc-a-compelling-diversified-bdc-etf-paying-9-3-percent\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PBDC: A Compelling Diversified BDC ETF Paying 9.3%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPBDC: A Compelling Diversified BDC ETF Paying 9.3%\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-26 23:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707134-pbdc-a-compelling-diversified-bdc-etf-paying-9-3-percent><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nastassia Samal Putnam BDC Income ETF (NYSEARCA:PBDC) is an exchange-traded fund with a focus on the business development company sector. The Putnam BDC Income ETF may be a compelling choice for ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707134-pbdc-a-compelling-diversified-bdc-etf-paying-9-3-percent\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARCC","symbol_name":"阿瑞斯","start_time":0,"source_url":"https://seekingalpha.com/article/4707134-pbdc-a-compelling-diversified-bdc-etf-paying-9-3-percent","article_id":"2454322103","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1303055097/image_1303055097.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2454322103","pubTimestamp":1722008442,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Nastassia Samal Putnam BDC Income ETF (NYSEARCA:PBDC) is an exchange-traded fund with a focus on the business development company sector. The Putnam BDC Income ETF may be a compelling choice for passi","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ARCC":"阿瑞斯","BK4135":"资产管理与托管银行","BK4148":"电子元件","FDN":"First Trust Dow Jones Internet I","BDC":"百通公司","BK4585":"ETF&股票定投概念","BXSL":"Blackstone Secured Lending Fund","PBDC":"Putnam Bdc Income ETF","OBDC":"Blue Owl Capital Corporation","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","MAIN":"Main Street Capital","BK4550":"红杉资本持仓","BK4588":"碎股","HTGC":"海格投资","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","BIZD":"VanECk BDC Income ETF"},"translate_title":"PBDC：引人注目的多元化BDC ETF，支付9.3%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BXSL":1,"PBDC":1,"OBDC":1,"MAIN":1,"HTGC":1,"FDN":1,"ARCC":1,"BIZD":1,"BDC":1},"content_text":"Nastassia Samal Putnam BDC Income ETF (NYSEARCA:PBDC) is an exchange-traded fund with a focus on the business development company sector. The Putnam BDC Income ETF may be a compelling choice for passive income investors that want to produce income from a diversified portfolio of investments in business development companies that pay high, recurring dividends without the risk that comes with picking individual stocks. The Putnam BDC Income ETF has a short performance track record, however, but its portfolio includes high-quality business development companies. I think PBDC has a role to play in a passive income investor’s portfolio as it simplifies the investing process, and the 9.3% yield is attractive as well. Diversified BDC ETF With Strong Diversification And A 9.4% Yield Sector-specific exchange-traded funds like the Putnam BDC Income ETF are attractive investment vehicles for passive income investors that don’t want to go through the extensive research process that comes with selecting individual business development companies. In addition, picking a diversified sector exchange-traded fund like PBDC removes company-specific risks from an investment portfolio and allows passive income investors to quickly gain exposure to the high-yield BDC sector. The Putnam BDC Income ETF seeks to replicate the performance of the S&P BDC Index and presently manages about $101 million. The Putnam BDC Income ETF is a relatively new investment option, as the exchange-traded fund was incepted only recently. The inception date is September 09, 2022 and PBDC thus has a short performance history on its belt which some passive income investors may consider to be a drawback. An alternative may be the VanEck BDC Income ETF (BIZD) which has a longer operating and return history: BIZD was incepted on February 13, 2013 and therefore has proven itself for a longer period of time. The Putnam BDC Income ETF has returned 32% since its inception and the one-year performance has been robust as well with a NAV return of 27.2%.   NAV Return (Putnam BDC Income ETF) With that said though, the BDC sector has performed strongly in the last year, as did the stock market index S&P 500, so passive income investors should take the PBDC’s one-year performance with a grain of salt and not extrapolate results. The VanEck BDC Income ETF, for instance, which earned 24.6% for investors in the last year, has a much more moderate long-term return: BIZD has returned an average NAV return of 8.03% per annum since 2013. The biggest portfolio position of the Putnam BDC Income ETF (with an 11.6% weighting) is Ares Capital Corp. (ARCC), a long-standing business development company that has a very good reputation in the industry. Ares Capital combines many of the factors that investors care most about: A long performance history, decent dividend coverage and a low historical loan loss ratio are among the reasons why Ares Capital is being held in high regard by passive income investors with a high-yield tilt. The second-biggest position for the Putnam BDC Income ETF is Blue Owl Capital Corp. (OBDC) which had a similar weighting to Ares Capital Corp. of 11% as of July 22, 2024. Other business development companies include Main Street Capital Corp. (MAIN), Hercules Capital Inc (HTGC) and Blackstone Secured Lending Fund (BXSL) which are all well-managed business development companies with strong performance track records. Blackstone Secured Lending, from a valuation and credit quality angle, is my top high-yield conviction idea for 2024.   Top 10 Positions (Putnam BDC Income ETF) Net Asset Value The Putnam BDC Income ETF’s net asset value as of July 23, 2024 was $34.12 which compares to a market price of $34.05, reflecting a NAV multiple of 1.0x. As is typical for an exchange-traded fund, its price tends to equal its net asset value, which is the sum of the underlying investments included in the ETF. The private credit industry is booming, which makes the Putnam BDC Income ETF a compelling bet on the overall growth of the business development company industry. In the long-term, private credit remains an attractive financing option for companies that have trouble receiving funding through more traditional channels, such as banks or venture capital. Therefore, my outlook on the BDC industry is bullish, and I think investors could profit from capital appreciation (net asset value growth) here as well. With that said, though, the primary objective for a PBDC investment is to generate recurring passive income. Why An Investment In PBDC Might Not Work Out The Putnam BDC Income ETF is a sector-specific exchange-traded fund that offers BDC industry exposure. The BDC sector has put up a very impressive performance in the last year, but this is primarily due to bullish market conditions. Passive income investors should therefore not make the mistake and extrapolate this outperformance moving forward. Many business development companies, the ones that PBDC invests in, own floating-rate loans in their portfolios, which may lead to lower net investment income in a falling-rate environment. Thus, the central bank represents an inherent risk for investors in the BDC sector because falling net investment income poses dividend pay-out and net asset value risks that investors in BDC ETFs should be aware of. Some of the BDCs included in the Putnam BDC Income ETF are also very highly valued on a net asset value basis, such as Main Street Capital or Hercules Capital, which might be considered vulnerabilities as well. My Conclusion If you are looking for immediate exposure to the BDC industry without having to sift through earnings releases, investor presentations and regulatory filings, and if you want to avoid company-specific risks, the Putnam BDC Income ETF may be a compelling choice for you. The exchange-traded fund pays a healthy 9.3% dividend and offers passive income investors access to a diversified portfolio of the largest business development companies in the market.  That high-quality BDC choices like Ares Capital or Hercules Capital are included here only makes the Putnam BDC Income ETF more attractive as a yield-driven investment vehicle.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.3","shortVersion":"4.26.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2454322103"}