HBDC yields 3.24% · ARCC yields 10.82%● Live data
📍 HBDC pulled ahead of the other in Year 9
Combined, HBDC + ARCC cover 0 of 12 months — good coverage
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HBDC is the first ETF focusing on debt issued by US registered business development companies (BDCs). A BDC is a unique vehicle designed to invest in small and medium-sized US businesses to encourage the flow of capital to private enterprises. Debt securities of such companies tend to yield above-average returns compared to Baa-rated corporate bonds, potentially providing more attractive income while generally maintaining investment-grade credit ratings. BDCs also have a track record of timely repayment, underscoring their stability and reliability. The underlying index focuses on fixed-coupon bonds issued by BDCs listed in the annual Business Development Company Report published by the SEC. Eligible bonds must meet minimum liquidity and size requirements. Securities are weighted in the portfolio based on market value. To avoid over-concentration, the index imposes a 10% cap per issuer and rebalances quarterly.
Full HBDC Calculator →Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
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⚠️ Educational purposes only. Not financial advice. Congressional trades sourced from SEC STOCK Act filings via FMP. Past performance does not guarantee future results.