BDCZ vs. FBDC

Last updated Jul 14, 2026

BDCZ (ETRACS MVIS Business Development Companies Index ETN) and FBDC (FT Confluence BDC & Specialty Finance Income ETF) are both Financials Equities funds. BDCZ is passively managed, while FBDC is actively managed. Over the past year, BDCZ returned -11.86% vs -12.75% for FBDC. Their correlation of 0.88 suggests significant overlap in exposure. BDCZ charges 0.85%/yr vs 1.35%/yr for FBDC.

Performance

BDCZ vs. FBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS MVIS Business Development Companies Index ETN (BDCZ) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BDCZ achieves a -4.99% return, which is significantly higher than FBDC's -7.16% return.

BDCZ

• 1D: 1.54%
• 1M: 1.10%
• 6M: -3.76%
• YTD: -4.99%
• 1Y: -11.86%
• 3Y*: 4.10%
• 5Y*: 4.18%
• 10Y*: 6.24%

FBDC

• 1D: -0.75%
• 1M: 0.63%
• 6M: -7.47%
• YTD: -7.16%
• 1Y: -12.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BDCZ vs. FBDC - Yearly Performance Comparison

	2026 (YTD)	2025
BDCZ ETRACS MVIS Business Development Companies Index ETN	-4.99%	-3.27%
FBDC FT Confluence BDC & Specialty Finance Income ETF	-7.16%	-2.66%

Correlation

The correlation between BDCZ and FBDC is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jun 30, 2025	0.88

The correlation between BDCZ and FBDC has been stable across timeframes, ranging from 0.88 to 0.88 - a consistent structural relationship.

Return for Risk

BDCZ vs. FBDC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BDCZ

BDCZ Risk / Return Rank: 5
BDCZ Sharpe Ratio Rank: 5
BDCZ Sortino Ratio Rank: 5
BDCZ Omega Ratio Rank: 5
BDCZ Calmar Ratio Rank: 4
BDCZ Martin Ratio Rank: 5

FBDC

FBDC Risk / Return Rank: 4
FBDC Sharpe Ratio Rank: 3
FBDC Sortino Ratio Rank: 4
FBDC Omega Ratio Rank: 4
FBDC Calmar Ratio Rank: 4
FBDC Martin Ratio Rank: 4

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BDCZ vs. FBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS MVIS Business Development Companies Index ETN (BDCZ) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BDCZ	FBDC	Difference
Sharpe ratio: Return per unit of total volatility	-0.54	-0.71	+0.18
Sortino ratio: Return per unit of downside risk	-0.64	-0.93	+0.29
Omega ratio: Gain probability vs. loss probability	0.92	0.90	+0.03
Calmar ratio: Return relative to maximum drawdown	-0.60	-0.62	+0.02
Martin ratio: Return relative to average drawdown	-0.99	-1.05	+0.07

BDCZ vs. FBDC - Sharpe Ratio Comparison

The current BDCZ Sharpe Ratio is -0.54, which is comparable to the FBDC Sharpe Ratio of -0.71. The chart below compares the historical Sharpe Ratios of BDCZ and FBDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BDCZ vs. FBDC - Drawdown Comparison

The maximum BDCZ drawdown since its inception was -55.63%, which is greater than FBDC's maximum drawdown of -20.60%. Use the drawdown chart below to compare losses from any high point for BDCZ and FBDC.

Drawdown Indicators

	BDCZ	FBDC	Difference
Max Drawdown Largest peak-to-trough decline	-55.63%	-20.60%	-35.03%
Max Drawdown (1Y) Largest decline over 1 year	-19.95%	-20.60%	+0.65%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-23.12%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-55.63%	—	—
Current Drawdown Current decline from peak	-14.58%	-15.10%	+0.52%
Average Drawdown Average peak-to-trough decline	-7.94%	-10.71%	+2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.04%	12.14%	-0.10%

Volatility

BDCZ vs. FBDC - Volatility Comparison

ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a higher volatility of 8.97% compared to FT Confluence BDC & Specialty Finance Income ETF (FBDC) at 4.14%. This indicates that BDCZ's price experiences larger fluctuations and is considered to be riskier than FBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDCZ	FBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.97%	4.14%	+4.83%
Volatility (6M) Calculated over the trailing 6-month period	18.65%	14.46%	+4.19%
Volatility (1Y) Calculated over the trailing 1-year period	22.17%	17.98%	+4.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.16%	17.85%	+0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.92%	17.85%	+4.07%

BDCZ vs. FBDC - Expense Ratio Comparison

BDCZ has a 0.85% expense ratio, which is lower than FBDC's 1.35% expense ratio.

Dividends

BDCZ vs. FBDC - Dividend Comparison

BDCZ's dividend yield for the trailing twelve months is around 10.92%, less than FBDC's 12.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BDCZ ETRACS MVIS Business Development Companies Index ETN	10.92%	10.65%	9.26%	9.13%	9.39%	7.49%	10.01%	8.40%	9.66%	8.74%	7.98%
FBDC FT Confluence BDC & Specialty Finance Income ETF	12.38%	5.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BDCZ and FBDC in my portfolio?

BDCZ and FBDC have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BDCZ or FBDC?

BDCZ has higher volatility (8.97%) compared to FBDC (4.14%). In terms of maximum drawdown, BDCZ dropped -55.63% vs FBDC's -20.60%.

Which ETF is better, BDCZ or FBDC?

On 1-year performance, BDCZ leads with -11.86% vs -12.75% for FBDC. On fees, BDCZ is cheaper at 0.85% per year. On volatility, FBDC has been the lower-risk option at 4.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BDCZ or FBDC?

Over the 1-year period, BDCZ has performed better with a -11.86% return vs -12.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BDCZ or FBDC?

BDCZ is cheaper with a 0.85% expense ratio, compared with 1.35% for FBDC.

Which ETF pays a higher dividend yield, BDCZ or FBDC?

FBDC has the higher dividend yield at 12.38%, compared with 10.92% for BDCZ.

What is the main difference between BDCZ and FBDC?

They also come from different issuers: UBS and First Trust. Their fees differ too: 0.85% for BDCZ and 1.35% for FBDC.

Which has better risk-adjusted returns?

BDCZ currently has the higher Sharpe Ratio (-0.54 vs -0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.