Monday, July 17, 2017

$BDCL - Is there an upside to buying shares of individual BDCs as opposed to BDC index ETFs like BDCL?

From a cursory look at the numbers, BDCL, which indexes major BDCs, is not very expensive, not very volatile over the last 3-4 years, and pays dividends that are substantially higher than individual BDCs (around $0.80/share or so, sometimes a little lower, sometimes higher, paid quarterly).

So if I have $2,000 to invest, and have the option of a BDC at $19 and BDCL at $19, but the BDC has a dividend of $0.40/share, and BDCL's is $0.80/share, why would I go with the BDC? BDCL is also diversified across the BDC sector, so doesn't that make it less volatile?

I'm very new to investing so if I said something stupid, forgive me and let me know, I want to learn!

Thanks.



Submitted July 17, 2017 at 02:39PM by showmeurknuckleball http://ift.tt/2t8HIzY
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1 comment:

  1. Justin BilyjNovember 18, 2017 at 8:39 AM

    Hey Beckley,
    Like the blog, I too am a fond investor of leveraged ETN's like $BDCL, $CEFL, $MORL, $REML etc. I developed a way to protect one's investment in these leveraged funds via put options. Check out my thread on reddit, https://www.reddit.com/r/options/comments/7dnlxf/morl_bdcl_cefl_reml_collar_option_strategy_funded/?ref=share&ref_source=link

    Join the conversation, and thanks again for posting your updates on here!

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