At a glance
PBDC charges 11.77% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $283.1M in assets, the 8th largest of that group; it paid 11.66% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −8.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +5.9% a year. Its ten largest positions make up 71.6% of the fund, out of 22 in all.
The short version
Putnam BDC Income ETF (PBDC) is an actively managed fund of funds. It holds about 22 business development companies (BDCs), which are firms that lend to mostly private, midsize US businesses. Its main draw is income: a trailing 12-month yield of 11.66% as of October 27, 2026, paid quarterly. The trade-off is cost. Its total expense ratio is 11.77%, mostly the BDCs' own expenses, on top of a 0.75% management fee.
Price history
The interactive chart needs JavaScript.
PBDC -8.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PBDC official prospectus, to Dec 31, 2025 | — | -1.50% | — | — | — | +17.83% |
| Russell3000Index index, same period | — | +17.15% | — | — | — | +22.39% |
| SPBDC Index index, same period | — | -3.50% | — | — | — | +15.78% |
| PBDC price data to Oct 27, 2026 | -9.8% | -8.9% | +5.9% | — | — | +11.1% |
- Over the year to Oct 27, 2026, PBDC returned -8.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (-1.5%); its best was 2023 (+30.4%).
- The deepest fall in its price history was 20.3% (Feb 19, 2025 to Mar 12, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -9.8% | — |
| 2025 | -1.5% | -1.50% |
| 2024 | +19.4% | +19.33% |
| 2023 | +30.4% | +30.29% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.1400 | |
| 2025 | $3.2300 | +0.9% |
| 2024 | $3.2000 | +2.6% |
| 2023 | $3.1200 |
What's inside
As of Jul 31, 2026, the fund held 22 securities; the ten largest made up 71.63% of assets.
| Fund held | Weight | |
|---|---|---|
| BLUE OWL CAPITAL CORP COM | 10.76% | |
| ARES CAPITAL CORP COM | 10.38% | |
| BLUE OWL TECHNOLOGY FINANCE CORP COMMON STOCK | 10.09% | |
| HERCULES CAPITAL INC COM | 8.61% | |
| GOLUB CAPITAL BDC INC COM | 7.54% | |
| MAIN STREET CAPITAL CORP COM | 6.70% | |
| TRINITY CAPITAL INC COM | 4.80% | |
| BLACKSTONE SECURED LENDING FUND COMMON STOCK | 4.32% | |
| SIXTH STREET SPECIALTY LENDING INC COM | 4.31% | |
| BARINGS BDC INC COM | 4.11% | |
| KAYNE ANDERSON BDC INC COM SHS | 3.79% | |
| CAPITAL SOUTHWEST CORP COM | 3.20% | |
| MSC INCOME FUND INC COM | 3.19% | |
| FS KKR CAPITAL CORP COM | 2.97% | |
| BAIN CAPITAL SPECIALTY FINANCE INC COM STK | 2.92% |
By country
United States 99.78%By asset type
Stocks 99.78%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $26.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -3.87%, -0.44%, -0.76%.
How it works
PBDC does not track an index. Its managers pick the holdings, and the stated goal is current income. Under normal conditions at least 80% of net assets go into exchange-traded BDCs. These are US companies registered with the SEC whose main business is lending to, investing in or serving privately held or thinly traded US companies. The fund can put up to 20% into publicly traded real estate investment trusts (REITs), including mortgage REITs. In choosing BDCs, the managers look at credit performance and risk, likely changes in earnings and dividends, how interest rates affect each BDC, and differences in leverage and balance sheets. They also weigh valuation and capital policies.
The portfolio is concentrated. As of July 31, 2026, it held 22 names, and the top 10 made up 71.6% of assets. The largest were Blue Owl Capital Corp (10.8%), Ares Capital (10.4%), Blue Owl Technology Finance (10.1%), Hercules Capital (8.6%) and Golub Capital BDC (7.5%). Under fund-of-funds rules, the fund can't own more than 3% of any one BDC's voting shares. Portfolio turnover was 38%.
Because the fund owns other funds, its reported expenses include the BDCs' own costs. It may also create and redeem shares in cash, which can make it less tax-efficient than ETFs that do this in kind. Its shares may also trade further from net asset value than other ETFs.
What it really costs
- PBDC charges 11.77% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $1,137 in the first year and $8,463 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PBDC | $1,137 | $3,185 | $4,965 | $8,463 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
The fund's stated objective is current income, and its quarterly payouts from BDCs gave a trailing yield of 11.66% as of October 27, 2026.
PBDC launched in September 2022, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its worst calendar year was 2025, at -1.5%. Its deepest drop was much steeper: 20.3% from February 19, 2025 to March 12, 2026. It had not recovered as of October 27, 2026, and it was down 9.8% for 2026 through that date. Anyone who had to sell shares during that stretch would have sold at lower prices. The fund paid $2.97 per share over the trailing 12 months, quarterly. The prospectus warns that some BDCs may not pay dividends in some periods. Costs are high. The SEC's standard example puts costs on $10,000 at $1,137 for one year and $8,463 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want quarterly payouts from about 22 BDCs, with a trailing yield of 11.66% as of October 27, 2026.
- Investors who would rather have a manager weigh each BDC's credit quality, dividends and leverage than research and buy individual BDCs themselves.
- Those adding a small slice of lending to private US companies alongside a broader stock and bond core.
Look elsewhere if
- Cost-conscious investors: the 11.77% total expense ratio includes the BDCs' own costs, and the SEC example shows $8,463 over 10 years on $10,000.
- Anyone who needs stable prices: it fell 20.3% from February 2025 to March 2026 and had not recovered by October 27, 2026.
- Investors who want broad diversification: it is concentrated in financials, and its top 10 holdings were 71.6% of assets as of July 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBDC this fund | 11.77% | $283.1M | -8.9% | +5.9% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does PBDC pay monthly dividends?
No. PBDC pays distributions quarterly, not monthly. Over the 12 months through October 27, 2026, it paid $2.97 per share, for a trailing yield of 11.66%. That income comes from the business development companies it owns, which pass most of their lending income on to shareholders. Payouts are not fixed. The prospectus warns that some BDCs may not pay dividends in some periods, so the fund's income can vary.
Why is PBDC's expense ratio so high?
Its 11.77% expense ratio, from the prospectus filed August 25, 2026, mostly reflects the costs of the BDCs it owns, not PBDC's own fee. The fund's management fee is 0.75%. Fund-of-funds disclosure rules require it to add in the operating expenses of the underlying companies. The SEC's standard example shows costs of $1,137 in year one and $8,463 over 10 years on a $10,000 investment, assuming a 5% annual return.
Is PBDC good for retirement income?
It depends on how much price swing a retiree can accept. PBDC's goal is current income. It yielded 11.66% as of October 27, 2026 and pays quarterly. But it is an equity fund concentrated in financials. It fell 20.3% between February 19, 2025 and March 12, 2026 and had not recovered by October 27, 2026. Its record only starts in 2022. Some investors use a fund like this as one part of a wider portfolio rather than as their main source of income.
How has PBDC performed compared with the S&P BDC Index?
It has done slightly better than its BDC benchmark, according to its prospectus. As of December 31, 2025, PBDC returned -1.5% over one year, compared with -3.5% for the S&P BDC Index. Since inception, it returned 17.83% a year, versus 15.78% for the index. Both trailed the broad Russell 3000 Index, which returned 22.39% a year over the same period. PBDC is actively managed and held 22 names as of July 31, 2026.
What does PBDC invest in?
PBDC mainly owns shares of business development companies, which lend to private and thinly traded US businesses. As of July 31, 2026, its largest holdings were Blue Owl Capital Corp (10.8%), Ares Capital (10.4%), Blue Owl Technology Finance (10.1%), Hercules Capital (8.6%), Golub Capital BDC (7.5%) and Main Street Capital (6.7%). The top 10 made up 71.6% of assets. The fund can also put up to 20% into publicly traded REITs, including mortgage REITs.