BDCs Have Big Yields, But Consider These Important Factors March 17, 2021 The search for yield can take income investors to a wide range of alternative asset classes. Those include business development companies (BDCs), accessible via the VanEck BIZD looks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Business Development Companies Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index. The index is comprised of BDCs. BDCs are vehicles whose principal business is to invest in, lend capital to, or provide services to privately-held companies or thinly traded U.S. public companies. Getting financing nowadays can be tough through traditional means like big banks. BDCs help fill the gap. While the income proposition is alluring, investors have other considerations with BDCs.