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With the S&P 500 struggling with its 2025 challenges, I believe that passive income solutions will capture even more market interest. During the last year, I abandoned the BDC stock market: I was afraid of a possibile increase of
BIZD: A 10%+ Yield ETF To Hedge S&P 500 Contraction Risk
Summary
- BIZD has a 30-Day SEC Yield of 10.29%, competitive in the market, with a positive 5+ year CAGR and an expense ratio of 0.44%.
- BDCs have proven to be a good hedge against S&P 500 contractions, maintaining strong margins even in restrictive credit conditions.
- BIZD is concentrated, with 76% in the top 10 holdings, but remains fairly priced (Grade D). A single-stock portfolio would be more efficient but harder to manage.
- I rate it as HOLD, given the market’s potential interest in yield investing.
I am passionate about investments and financial analysis with over 10 years of experience in global markets. Specializing in macroeconomics, I base my investments on long-term growth strategies. I have worked for years in research, analysis, and consulting in the financial sector, and for this reason, I closely follow market trends. My investment approach is based on rigorous research aimed at finding investment opportunities through a contrarian strategy. I strongly believe that, in the long term, certain sectors are destined to grow, and I seek to take positions in the market during times of difficulty at statistically advantageous prices. Diversification will do the rest.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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