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BDCs: The Liquid Alternative to Private Credit

BDCs: The Liquid Alternative to Private Credit

In the ever-evolving financial landscape, investors are constantly seeking innovative ways to diversify their portfolios and achieve optimal returns. Over the last decade, private equity and credit strategies have surged in popularity due to their unique return and yield potential. However, these typically come with the trade-off of reduced liquidity due to lockup periods. Recently, though, capital fundraising for these private strategies has witnessed a decline.

**”Gross Expense Ratio” reflects a fund’s total annual operating expenses as stated in the fund’s prospectus and does not reflect any expense reimbursements or waivers that may exist. This mutual fund may be subject to expense reimbursements and waivers, and less such reimbursements and waivers may have lower total annual operating expenses (i.e., “Net Expense Ratio”) than indicated herein. Please read the fund prospectus carefully to determine the existence of any expense reimbursements or waivers and details on their limits and termination dates.

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Performance quoted represents past performance, is no guarantee of future results, and may not provide an adequate basis for evaluating the performance of the product over varying market conditions or economic cycles. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

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ETFs are subject to risk similar to those of their underlying securities, including, but not limited to, market, investment, sector, or industry risks, and those regarding short-selling and margin account maintenance. Some ETFs may involve international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors.

Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).