The company says it is the first exchange-traded fund (ETF) designed to provide pure-play exposure to business development companies (BDCs).
BIZD seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors U.S. Business Development Companies Index (MVBIZDTG), a rules-based index intended to track the overall performance of publicly traded business development companies. To be eligible for the index, a BDC must also have a market capitalization in excess of $150 million, a three-month average daily trading volume of at least $1 million and a minimum trading volume of 250,000 shares each month in the previous six months.
“Business development companies have traditionally been high-yielding, making them an attractive choice in today’s ongoing search for income,” said Brandon Rakszawski, product manager for Market Vectors ETFs. “Investing in BDCs provides exposure to private companies that many investors could not otherwise access, allowing for potential growth and yield generation.”
More information is at http://www.vaneck.com/market-vectors/equity-etfs/.