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Advisors did not slow down on exchange-traded funds in the second quarter. They added more of them, and pointed the money somewhere new, according to AdvizorPro's Q2 2026 RIA ETF Trends report.
Retirees face a challenging trade-off: higher-yielding assets sacrifice growth or add risk, while core dividend ETFs like SCHD now yield only ~3%. Relying solely on high-yield ETFs (PFF, HYG, JEPQ) exposes portfolios to credit risk, limited income growth, or capped upside, complicating sustainable income generation. A core & satellite approach—anchoring with SCHD-like holdings and selectively adding midstream (AMLP) and BDCs (BIZD) can enhance yield while managing risk.
Covered call ETFs offer tempting yields but quietly surrender your upside every time the market rallies. Two fixed-income alternatives push past 11% without that hidden cost, though the trade-offs they demand deserve a hard look before you buy.
BIZD remains my preferred vehicle for public business development company exposure amid recent sector volatility. Public BDCs like ARCC and OBDC have traded at steep discounts to book value, reflecting persistent risk aversion despite stable internal performance. A 20% valuation gap exists between public BDCs and their private counterparts, echoing similar dislocations seen in public versus private REITs.
BIZD's double-digit yield looks like a private-credit shortcut, but a hidden fee structure quietly eats into returns in a way most investors never calculate before they buy.
Private credit has grown into an asset class that now rivals high-yield bonds, with direct lending, middle market loans, and collateralized loan structures moving trillions of dollars outside the traditional banking system.
Many BDCs have cut their dividends in the past 12-month period. However, for many (including those who have already cut), some form of damage is still in front of them. In my view, investing in BDCs for truly durable income is almost impossible.
Ferguson Shapiro LLC acquired a new stake in VanEck BDC Income ETF (NYSEARCA:BIZD) during the undefined quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 174,640 shares of the company's stock, valued at approximately $2,211,000. Ferguson Shapiro LLC owned 0.14% of VanEck BDC Income