Van Eck To Roll Out ETF Tracking Business Development Cos.

Van Eck, the parent company of Market Vectors, the sixth-largest U.S. ETF issuer, has filed plans with the SEC to introduce an ETF tracking business development companies. The Market Vectors Business Development Company/Specialty Finance ETF will track the the Market Vectors Business Development Company/Specialty Finance Index, which is a rules-based index. A ticker and expense ratio were not disclosed in the filing. BDCs are registered under the Investment Company Act of 1940 and typically invest in private companies through both equity and debt financing. Since BDCs payout 90% of their income in the form of dividends to avoid being taxed as a regular corporation, they often sport robust dividend yields. While Van Eck's filing did not disclose specific stocks that could be part of the new BDC ETF, it might be reasonable to expects companies like BlackRock Kelso Capital BKCC, Prospect Capital PSEC and Fifth Street Finance Corp FSC will be part of the lineup. Market Vectors issues over 30 ETFs, including seven bond funds, with over $22 billion in assets under management. Read more: http://www.benzinga.com/etfs/bond-etfs/11/04/1033270/van-eck-launches-new-corporate-bond-etf#ixzz1KwMEYnsO