PBDC vs. BDCZ

Last updated Jun 24, 2026

PBDC (Putnam BDC Income ETF) and BDCZ (ETRACS MVIS Business Development Companies Index ETN) are both Financials Equities funds. PBDC is actively managed, while BDCZ is passively managed. Over the past 3 years, PBDC returned 7.11%/yr vs 4.71%/yr for BDCZ. Their correlation of 0.93 suggests significant overlap in exposure. PBDC charges 13.49%/yr vs 0.85%/yr for BDCZ.

Performance

PBDC vs. BDCZ - Performance Comparison

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

Returns By Period

In the year-to-date period, PBDC achieves a -11.42% return, which is significantly lower than BDCZ's -8.73% return.

PBDC

• 1D: 0.30%
• 1M: -1.31%
• YTD: -11.42%
• 6M: -9.25%
• 1Y: -11.33%
• 3Y*: 7.11%
• 5Y*: —
• 10Y*: —

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%

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

PBDC vs. BDCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PBDC Putnam BDC Income ETF	-11.42%	-1.77%	19.43%	30.52%	10.38%
BDCZ ETRACS MVIS Business Development Companies Index ETN	-8.73%	-3.72%	12.22%	25.31%	11.03%

Correlation

The correlation between PBDC and BDCZ is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022	0.93

The correlation between PBDC and BDCZ has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

PBDC vs. BDCZ — Risk / Return Rank

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

PBDC

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

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

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.

PBDC vs. BDCZ - Risk-Adjusted Trends Comparison

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

	PBDC	BDCZ	Difference
Sharpe ratio: Return per unit of total volatility	-0.61	-0.50	-0.11
Sortino ratio: Return per unit of downside risk	-0.76	-0.58	-0.18
Omega ratio: Gain probability vs. loss probability	0.91	0.93	-0.02
Calmar ratio: Return relative to maximum drawdown	-0.56	-0.52	-0.05
Martin ratio: Return relative to average drawdown	-0.98	-0.89	-0.09

PBDC vs. BDCZ - Sharpe Ratio Comparison

The current PBDC Sharpe Ratio is -0.61, which is comparable to the BDCZ Sharpe Ratio of -0.50. The chart below compares the historical Sharpe Ratios of PBDC and BDCZ, 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

PBDC vs. BDCZ - Drawdown Comparison

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

Drawdown Indicators

	PBDC	BDCZ	Difference
Max Drawdown Largest peak-to-trough decline	-20.47%	-55.63%	+35.16%
Max Drawdown (1Y) Largest decline over 1 year	-20.15%	-19.95%	-0.20%
Max Drawdown (3Y) Largest decline over 3 years	-20.47%	-20.77%	+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	-18.74%	-17.94%	-0.80%
Average Drawdown Average peak-to-trough decline	-4.83%	-7.90%	+3.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.58%	11.51%	+0.07%

Volatility

PBDC vs. BDCZ - Volatility Comparison

The current volatility for Putnam BDC Income ETF (PBDC) is 5.50%, while ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a volatility of 8.44%. This indicates that PBDC experiences smaller price fluctuations and is considered to be less risky than BDCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBDC	BDCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.50%	8.44%	-2.94%
Volatility (6M) Calculated over the trailing 6-month period	15.43%	17.35%	-1.92%
Volatility (1Y) Calculated over the trailing 1-year period	18.66%	20.62%	-1.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.05%	17.81%	-0.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.05%	21.76%	-4.71%

PBDC vs. BDCZ - Expense Ratio Comparison

PBDC has a 13.49% expense ratio, which is higher than BDCZ's 0.85% expense ratio.

Dividends

PBDC vs. BDCZ - Dividend Comparison

PBDC's dividend yield for the trailing twelve months is around 11.91%, more than BDCZ's 11.37% yield.

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%
PBDC Putnam BDC Income ETF	11.91%	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 PBDC and BDCZ in my portfolio?

PBDC and BDCZ have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBDC or BDCZ?

BDCZ has higher volatility (8.44%) compared to PBDC (5.50%). In terms of maximum drawdown, PBDC dropped -20.47% vs BDCZ's -55.63%.

Which ETF is better, PBDC or BDCZ?

On 3-year performance, PBDC leads with 7.11% vs 4.71% for BDCZ. On fees, BDCZ is cheaper at 0.85% per year. On volatility, PBDC has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PBDC or BDCZ?

Over the 3-year period, PBDC has performed better with a 7.11% return vs 4.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PBDC or BDCZ?

BDCZ is cheaper with a 0.85% expense ratio, compared with 13.49% for PBDC.

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

PBDC has the higher dividend yield at 11.91%, compared with 11.37% for BDCZ.

What is the main difference between PBDC and BDCZ?

They also come from different issuers: Franklin Templeton and UBS. Their fees differ too: 13.49% for PBDC and 0.85% for BDCZ.

Which has better risk-adjusted returns?

BDCZ currently has the higher Sharpe Ratio (-0.50 vs -0.61), 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.