If you own BDCs, or if they are on your buy list, you need to be aware of the following:
The headline is a bit misleading. But that is cleared up in the first sentence of the article: "Unless the SEC changes the sector's fee-reporting standards by May 15, Russell told clients last night it will remove BDCs from its indexes during its June reconstitution."
And the above article links to another article in Barrons.
Why are BDCs being booted? Because the funds that own them have to report the fees that BDCs change as part of the fees that the funds change - and that makes the funds that own BDCs look bad. Mortgage REITs are exempt from that requirement. So it can be correctly argued that the whole thing is "unfair". But this unfair event may well happen. There will be a lot more fear priced into BDCs until this event is settled. No - let me rephrase that. If and when the news that BDCs may be booted from the Russell indexes gets out - then there will be more fear priced into BDCs.
At this point in time, those BDC investors who only get their news from Yahoo finance appear to lack the news of the potential "booting".