BDCZ vs. USML

Last updated Jun 24, 2026

BDCZ (ETRACS MVIS Business Development Companies Index ETN) and USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) are both exchange-traded funds - BDCZ is a Financials Equities fund tracking the BDCZ-US - MVIS US Business Development Companies Index, while USML is a Leveraged Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 5 years, BDCZ returned 3.29%/yr vs 7.17%/yr for USML. At a 0.47 correlation, their price movements are largely independent. BDCZ charges 0.85%/yr vs 0.95%/yr for USML.

Performance

BDCZ vs. USML - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS MVIS Business Development Companies Index ETN (BDCZ) and ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BDCZ achieves a -8.73% return, which is significantly lower than USML's -0.53% return.

BDCZ

• 1D: 0.45%
• 1M: -0.80%
• YTD: -8.73%
• 6M: -6.81%
• 1Y: -10.27%
• 3Y*: 4.71%
• 5Y*: 3.29%
• 10Y*: 6.05%

USML

• 1D: 0.60%
• 1M: -4.40%
• YTD: -0.53%
• 6M: -1.84%
• 1Y: 1.32%
• 3Y*: 14.47%
• 5Y*: 7.17%
• 10Y*: —

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

BDCZ vs. USML - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
BDCZ ETRACS MVIS Business Development Companies Index ETN	-8.73%	-3.72%	12.22%	25.31%	-9.12%	25.81%
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	-0.53%	9.33%	23.97%	11.37%	-22.87%	42.12%

Correlation

The correlation between BDCZ and USML is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (All Time) Calculated using the full available price history since Feb 5, 2021	0.47

The correlation between BDCZ and USML shifts across timeframes, from 0.28 (1 year) to 0.49 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

BDCZ vs. USML — 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

USML

USML Risk / Return Rank: 9
USML Sharpe Ratio Rank: 10
USML Sortino Ratio Rank: 9
USML Omega Ratio Rank: 9
USML Calmar Ratio Rank: 10
USML Martin Ratio Rank: 10

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. USML - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS MVIS Business Development Companies Index ETN (BDCZ) and ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML). 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	USML	Difference
Sharpe ratio: Return per unit of total volatility	-0.50	0.08	-0.58
Sortino ratio: Return per unit of downside risk	-0.58	0.22	-0.80
Omega ratio: Gain probability vs. loss probability	0.93	1.03	-0.10
Calmar ratio: Return relative to maximum drawdown	-0.52	0.10	-0.62
Martin ratio: Return relative to average drawdown	-0.89	0.29	-1.19

BDCZ vs. USML - Sharpe Ratio Comparison

The current BDCZ Sharpe Ratio is -0.50, which is lower than the USML Sharpe Ratio of 0.08. The chart below compares the historical Sharpe Ratios of BDCZ and USML, 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. USML - Drawdown Comparison

The maximum BDCZ drawdown since its inception was -55.63%, which is greater than USML's maximum drawdown of -35.34%. Use the drawdown chart below to compare losses from any high point for BDCZ and USML.

Drawdown Indicators

	BDCZ	USML	Difference
Max Drawdown Largest peak-to-trough decline	-55.63%	-35.34%	-20.29%
Max Drawdown (1Y) Largest decline over 1 year	-19.95%	-13.09%	-6.86%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	-19.14%	-1.63%
Max Drawdown (5Y) Largest decline over 5 years	-23.12%	-35.34%	+12.22%
Max Drawdown (10Y) Largest decline over 10 years	-55.63%	—	—
Current Drawdown Current decline from peak	-17.94%	-6.96%	-10.98%
Average Drawdown Average peak-to-trough decline	-7.90%	-10.36%	+2.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.51%	4.50%	+7.01%

Volatility

BDCZ vs. USML - Volatility Comparison

ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a higher volatility of 8.44% compared to ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) at 4.79%. This indicates that BDCZ's price experiences larger fluctuations and is considered to be riskier than USML based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDCZ	USML	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.44%	4.79%	+3.65%
Volatility (6M) Calculated over the trailing 6-month period	17.35%	11.79%	+5.56%
Volatility (1Y) Calculated over the trailing 1-year period	20.62%	16.52%	+4.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	24.47%	-6.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.76%	24.22%	-2.46%

BDCZ vs. USML - Expense Ratio Comparison

BDCZ has a 0.85% expense ratio, which is lower than USML's 0.95% expense ratio.

Dividends

BDCZ vs. USML - Dividend Comparison

BDCZ's dividend yield for the trailing twelve months is around 11.37%, while USML has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BDCZ ETRACS MVIS Business Development Companies Index ETN	11.37%	10.65%	9.26%	9.13%	9.39%	7.49%	10.01%	8.40%	9.66%	8.74%	7.98%
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	0.00%	0.00%	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 USML in my portfolio?

BDCZ and USML have a correlation of 0.28, 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 USML?

BDCZ has higher volatility (8.44%) compared to USML (4.79%). In terms of maximum drawdown, BDCZ dropped -55.63% vs USML's -35.34%.

Which ETF is better, BDCZ or USML?

On 5-year performance, USML leads with 7.17% vs 3.29% for BDCZ. On fees, BDCZ is cheaper at 0.85% per year. On volatility, USML has been the lower-risk option at 4.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BDCZ or USML?

Over the 5-year period, USML has performed better with a 7.17% return vs 3.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BDCZ or USML?

BDCZ is cheaper with a 0.85% expense ratio, compared with 0.95% for USML.

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

BDCZ has the higher dividend yield at 11.37%, compared with 0.00% for USML.

What is the main difference between BDCZ and USML?

BDCZ is categorized as Financials Equities, while USML is Leveraged Equities. BDCZ tracks BDCZ-US - MVIS US Business Development Companies Index, while USML tracks MSCI USA Minimum Volatility Index. Their fees differ too: 0.85% for BDCZ and 0.95% for USML.

Which has better risk-adjusted returns?

USML currently has the higher Sharpe Ratio (0.08 vs -0.50), 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.