PBDC - ETF AI Analysis
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Putnam BDC Income ETF (PBDC)
PBDC, the Putnam BDC Income ETF, earns a solid overall rating driven mainly by large positions in strong business development companies like Ares Capital (ARCC) and Hercules Capital (HTGC), which show robust financial performance, attractive valuations, and supportive earnings call trends. Other sizable holdings such as Main Street Capital (MAIN) and Blue Owl Capital (OBDC) add income potential but face issues like bearish technical signals, cash flow fluctuations, and revenue declines, which modestly weigh on the fund’s rating. The main risk factor is the ETF’s concentrated exposure to BDCs, meaning its performance is closely tied to the health of this single niche in the credit and lending market.
PBDC vs. SPDR S&P 500 ETF (SPY)
- AUM
- 264.66M
- Region
- North America
- Expense Ratio
- 11.77%
- Beta
- 0.68
- Issuer
- Putnam
- Inception Date
- Sep 29, 2022
- Dividend Yield
- 11.95%
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
PBDC Summary
Putnam BDC Income ETF (PBDC) is an exchange-traded fund that focuses on U.S. financial companies called Business Development Companies (BDCs), which lend money and provide support to smaller and mid-sized businesses. It does not track a traditional index, but instead follows a theme of income-focused BDCs, including well-known names like Ares Capital and Hercules Capital. Investors might consider PBDC if they want regular income from dividends and exposure to a range of BDCs in one fund. A key risk is that it is heavily concentrated in financial companies, so its price and income can rise or fall with that sector and the broader economy.
How much will it cost me?
The Putnam BDC Income ETF (PBDC) has an expense ratio of 13.49%, which means you’ll pay $134.90 per year for every $1,000 invested. This is significantly higher than average because it is actively managed and focuses on a specialized niche in the financial sector, requiring more expertise and resources. While the cost is high, it reflects the fund's targeted approach and professional management.
What would affect this ETF?
The Putnam BDC Income ETF (PBDC) could benefit from economic growth in the U.S., as Business Development Companies (BDCs) thrive when small and mid-sized businesses expand and seek capital. However, rising interest rates or tighter credit conditions could negatively impact BDCs by increasing borrowing costs and reducing demand for loans, potentially affecting the fund's income generation. Additionally, regulatory changes in the financial sector could influence the operations of top holdings like Ares Capital and Blue Owl Capital.
PBDC Top 10 Holdings
PBDC is firmly anchored in U.S. business development companies, with heavy exposure to names like Blue Owl Capital and Ares Capital, which have been mixed lately and no longer the clear engines of growth they once were. Blue Owl Technology Finance and Golub Capital are also lagging, acting as a bit of a brake on the fund’s momentum. On the brighter side, Hercules Capital, Main Street Capital, and Trinity Capital are steadier income workhorses, helping balance out the bumps. Overall, it’s a concentrated financials play, tightly focused on U.S. credit and lending to smaller businesses.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 ARCC | Ares Capital | 11.29% | $29.28M | $13.22B | -5.56% | 80Outperform |
 OBDC | Blue Owl Capital | 10.05% | $26.07M | $4.88B | -21.89% | 69Neutral |
 OTF | Blue Owl Technology Finance Corp. | 9.47% | $24.57M | $4.13B | -37.19% | ―― |
 MAIN | Main Street Capital | 9.17% | $23.79M | $4.97B | -7.92% | 75Outperform |
 HTGC | Hercules Capital, Inc. | 8.92% | $23.15M | $3.01B | -6.92% | 79Outperform |
 GBDC | Golub Capital Bdc | 5.30% | $13.74M | $3.12B | -13.85% | 71Outperform |
 TRIN | Trinity Capital | 4.71% | $12.21M | $1.50B | 9.37% | 76Outperform |
 BXSL | Blackstone Secured Lending Fund | 4.49% | $11.64M | $5.47B | -9.02% | 74Outperform |
 TSLX | Sixth Street Specialty Lending | 4.27% | $11.09M | $1.60B | -22.37% | 75Outperform |
 CSWC | Capital Southwest | 3.75% | $9.73M | $1.44B | 9.81% | 68Neutral |
PBDC Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PBDC, the sentiment is Negative. The current price of 24.82 is below the 20-day moving average (MA) of 25.83, below the 50-day MA of 26.69, and below the 200-day MA of 26.32, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 31.44 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PBDC.
PBDC Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| PBDC | $24.82 | $30.00(20.87% Upside) | $264.66M | 11.77% | 65Neutral |
 FEPI | $41.43 | $55.08(32.94% Upside) | $714.28M | 0.65% | 71Outperform |
 GTOP | $48.97 | $63.42(29.49% Upside) | $735.90M | 0.65% | 74Outperform |
 IETC | $108.04 | $144.80(34.02% Upside) | $666.15M | 0.18% | 73Outperform |
 AIPI | $35.87 | $46.49(29.60% Upside) | $476.82M | 0.65% | 73Outperform |
 JPRE | $50.71 | $57.69(13.76% Upside) | $462.50M | 0.50% | 67Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PBDC | Putnam BDC Income ETF | 24.82 | -2.47 | -9.05% | |
| FEPI | REX FANG & Innovation Equity Premium Income ETF | 41.43 | 4.59 | 12.47% | |
| GTOP | Goldman Sachs Technology Opportunities ETF | 48.97 | 8.97 | 22.44% | |
| IETC | iShares Evolved US Technology ETF | 108.04 | 6.45 | 6.35% | |
| AIPI | REX AI Equity Premium Income ETF | 35.87 | 5.31 | 17.36% | |
| JPRE | JPMorgan Realty Income ETF | 50.71 | 3.33 | 7.02% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.