BDC ETFs BIZD and PBDC yield 13.65% and 11.50%, respectively, nearly double JEPI's 8% with a meaningful tax edge for income investors.
BDC dividends are taxed at the capital gains rate (max 20%), while JEPI's options-based payouts face ordinary income tax up to 37%.
The BDC industry swelled to $500 billion AUM with a 28% CAGR since 2020, fueled by small-business credit demand abandoned by banks after 2008.
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