BDCZ vs. PBDC

Last updated Jun 3, 2026

BDCZ (ETRACS MVIS Business Development Companies Index ETN) and PBDC (Putnam BDC Income ETF) are both Financials Equities funds. BDCZ is passively managed, while PBDC is actively managed. Over the past 3 years, BDCZ returned 5.72%/yr vs 8.54%/yr for PBDC. Their correlation of 0.93 suggests significant overlap in exposure. BDCZ charges 0.85%/yr vs 0.75%/yr for PBDC.

Performance

BDCZ vs. PBDC - Performance Comparison

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

Returns By Period

In the year-to-date period, BDCZ achieves a -5.39% return, which is significantly higher than PBDC's -7.76% return.

BDCZ

• 1D: -4.21%
• 1M: -4.77%
• YTD: -5.39%
• 6M: -5.19%
• 1Y: -7.46%
• 3Y*: 5.72%
• 5Y*: 4.02%
• 10Y*: 6.52%

PBDC

• 1D: -0.94%
• 1M: -4.38%
• YTD: -7.76%
• 6M: -7.02%
• 1Y: -8.11%
• 3Y*: 8.54%
• 5Y*: —
• 10Y*: —

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

BDCZ vs. PBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
BDCZ ETRACS MVIS Business Development Companies Index ETN	-5.39%	-3.72%	12.22%	25.31%	10.55%
PBDC Putnam BDC Income ETF	-7.76%	-1.77%	19.43%	30.52%	10.86%

Correlation

The correlation between BDCZ and PBDC is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (All Time) Calculated using the full available price history since Oct 3, 2022	0.93

The correlation between BDCZ and PBDC has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

Return for Risk

BDCZ vs. PBDC — 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: 5
BDCZ Martin Ratio Rank: 5

PBDC

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

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. PBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS MVIS Business Development Companies Index ETN (BDCZ) and Putnam BDC Income ETF (PBDC). 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.

	BDCZ	PBDC	Difference
Sharpe ratio Return per unit of total volatility	-0.37	-0.45	+0.08
Sortino ratio Return per unit of downside risk	-0.39	-0.52	+0.13
Omega ratio Gain probability vs. loss probability	0.95	0.94	+0.01
Calmar ratio Return relative to maximum drawdown	-0.42	-0.44	+0.02
Martin ratio Return relative to average drawdown	-0.76	-0.82	+0.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BDCZ vs. PBDC - Sharpe Ratio Comparison

The current BDCZ Sharpe Ratio is -0.37, which is comparable to the PBDC Sharpe Ratio of -0.45. The chart below compares the historical Sharpe Ratios of BDCZ and PBDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BDCZ	PBDC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.37	-0.45	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.77	-0.49

Drawdowns

BDCZ vs. PBDC - Drawdown Comparison

The maximum BDCZ drawdown since its inception was -55.63%, which is greater than PBDC's maximum drawdown of -20.47%. Use the drawdown chart below to compare losses from any high point for BDCZ and PBDC.

Drawdown Indicators

	BDCZ	PBDC	Difference
Max Drawdown Largest peak-to-trough decline	-55.63%	-20.47%	-35.16%
Max Drawdown (1Y) Largest decline over 1 year	-19.95%	-20.15%	+0.20%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	-20.47%	-0.30%
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	-14.94%	-15.39%	+0.45%
Average Drawdown Average peak-to-trough decline	-7.86%	-4.65%	-3.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.89%	10.89%	0.00%

Volatility

BDCZ vs. PBDC - Volatility Comparison

ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a higher volatility of 7.99% compared to Putnam BDC Income ETF (PBDC) at 4.76%. This indicates that BDCZ's price experiences larger fluctuations and is considered to be riskier than PBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDCZ	PBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.99%	4.76%	+3.23%
Volatility (6M) Calculated over the trailing 6-month period	16.96%	14.89%	+2.07%
Volatility (1Y) Calculated over the trailing 1-year period	20.26%	18.21%	+2.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.76%	17.01%	+0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.72%	17.01%	+4.71%

BDCZ vs. PBDC - Expense Ratio Comparison

BDCZ has a 0.85% expense ratio, which is higher than PBDC's 0.75% expense ratio.

Dividends

BDCZ vs. PBDC - Dividend Comparison

BDCZ's dividend yield for the trailing twelve months is around 10.97%, less than PBDC's 11.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BDCZ ETRACS MVIS Business Development Companies Index ETN	10.97%	10.65%	9.26%	9.13%	9.39%	7.49%	10.01%	8.40%	9.66%	8.74%	7.98%
PBDC Putnam BDC Income ETF	11.44%	10.53%	9.29%	9.86%	3.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BDCZ and PBDC in my portfolio?

BDCZ and PBDC have a correlation of 0.89, 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 PBDC?

BDCZ has higher volatility (7.99%) compared to PBDC (4.76%). In terms of maximum drawdown, BDCZ dropped -55.63% vs PBDC's -20.47%.

Which ETF is better, BDCZ or PBDC?

On 3-year performance, PBDC leads with 8.54% vs 5.72% for BDCZ. On fees, PBDC is cheaper at 0.75% per year. On volatility, PBDC has been the lower-risk option at 4.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BDCZ or PBDC?

Over the 3-year period, PBDC has performed better with a 8.54% return vs 5.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BDCZ or PBDC?

PBDC is cheaper with a 0.75% expense ratio, compared with 0.85% for BDCZ.

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

PBDC has the higher dividend yield at 11.44%, compared with 10.97% for BDCZ.

What is the main difference between BDCZ and PBDC?

They also come from different issuers: UBS and Putnam. Their fees differ too: 0.85% for BDCZ and 0.75% for PBDC.

Which has better risk-adjusted returns?

BDCZ currently has the higher Sharpe Ratio (-0.37 vs -0.45), 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.