Behind the Ticker: The First Pure Play BDC Bond ETF

In this ETF.com video, host Brad Roth speaks with Mike O’Brien of Hilton Capital Management about HBDC, described as the first pure-play BDC bond ETF. The discussion covers how business development companies lend to small and mid-sized U.S. businesses and fund that lending partly through bond issuance, and why Hilton built a custom index with Solactive for the fund. It also addresses how the ETF compares with equity BDC exposure such as BIZD and with non-traded BDCs and interval funds.

1. HBDC is described as the first pure-play BDC bond ETF on the market.
2. BDCs are described as lenders to small and mid-sized U.S. businesses that fund lending partly by issuing bonds.
3. Most investors know BDCs through equity ETFs like BIZD, while HBDC tracks BDC bonds.
4. Hilton built a custom index with Solactive for the fund, and the episode discusses potential appeal for advisors frustrated with lockups and fees of non-traded BDCs and interval funds.