BALI
iShares U.S. Large Cap Premium Income Active ETF
stock BATS ETF

The best BDCs, according to scholarly research, are those that are internally managed. They don’t have the consistent fee drag that the external BDCs do. The internals are: MAIN, CSWC, HTGC and TRIN. They all typically trade at a premium to their NAV.
BDCs are cyclical. Interest rates go up, yields go up, etc. The reverse occurs as well. They are not going to have a lot of capital gains, but most trade in a range. They will never perform like sector ETFs. For income, they are decent, but you have to watch for the credit cycle exposure. The companies they loan money to can fail to pay their loans back. That impacts the BDCs in terms of stock price, dividend coverage, etc. Raymond James provides a weekly report on BDCs that you can use to learn about some of the key metrics that are involved.
IMO, BDCs can be part of an income portfolio. You can also look at newer CC ETFs that are partially covered and will give you income as well as some growth over time. I personally like GPIQ and BALQ for Nasdaq and GPIX and BALI for the S&P. I would not personally put more than 10-15% in BDCs because of the correlated risk. Hope this helps. If I were to pick one BDC to invest in, I would pick HTGC.

The best BDCs, according to scholarly research, are those that are internally managed. They don’t have the consistent fee drag that the external BDCs do. The internals are: MAIN, CSWC, HTGC and TRIN. They all typically trade at a premium to their NAV.
BDCs are cyclical. Interest rates go up, yields go up, etc. The reverse occurs as well. They are not going to have a lot of capital gains, but most trade in a range. They will never perform like sector ETFs. For income, they are decent, but you have to watch for the credit cycle exposure. The companies they loan money to can fail to pay their loans back. That impacts the BDCs in terms of stock price, dividend coverage, etc. Raymond James provides a weekly report on BDCs that you can use to learn about some of the key metrics that are involved.
IMO, BDCs can be part of an income portfolio. You can also look at newer CC ETFs that are partially covered and will give you income as well as some growth over time. I personally like GPIQ and BALQ for Nasdaq and GPIX and BALI for the S&P. I would not personally put more than 10-15% in BDCs because of the correlated risk. Hope this helps. If I were to pick one BDC to invest in, I would pick HTGC.