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FBDC - ETF AI Analysis
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FT Confluence BDC & Specialty Finance Income ETF (FBDC)
Rating:72Outperform
Price Target:―
Positive Factors
Solid Recent Performance
The ETF has shown steady gains so far this year and in recent months, indicating generally positive momentum.
Strong Core Holdings
Several of the largest positions, such as Main Street Capital and Ares Capital, have delivered strong year-to-date results that support the fund’s overall performance.
Focused Income Strategy
The fund’s concentration in business development companies and specialty finance names offers targeted exposure for investors seeking income from the financial sector.
Negative Factors
Extremely High Expense Ratio
The ETF charges a very high fee, which can significantly reduce the net returns that investors actually receive over time.
Heavy Sector Concentration
With almost all assets in the financial sector, the fund is highly sensitive to downturns or stress in financial and credit markets.
Limited Diversification by Region and Holdings
The ETF is almost entirely invested in U.S. companies and a handful of BDC names, so weakness in this niche area or country could have an outsized impact on performance.
FBDC vs. SPDR S&P 500 ETF (SPY)
AUM38.65M
RegionNorth America
Expense Ratio13.69%
Beta0.94
IssuerFirst Trust
Inception DateJun 30, 2025
Dividend Yield6.42%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume7,494
30 Day Avg. Volume9,351
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
21.01Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FBDC Summary
FBDC is an actively managed ETF that invests mainly in U.S. business development companies (BDCs) and specialty finance firms, a niche within the financial sector. These companies lend money to and invest in small- and mid-sized businesses, aiming to earn steady income and long-term growth. The fund holds well-known names in this space such as Ares Capital and Main Street Capital. Someone might consider FBDC for its potential for higher income and diversification within financials. A key risk is that it is heavily concentrated in one sector, so its price can rise or fall sharply with financial stocks.
How much will it cost me?The expense ratio for the FT Confluence BDC & Specialty Finance Income ETF (Ticker: FBDC) is 13.69%, which means you’ll pay $136.90 per year for every $1,000 invested. This is significantly higher than average because the fund is actively managed, requiring more resources to select and monitor investments in its niche sector.
What would affect this ETF?FBDC could benefit from economic growth in the U.S., as its focus on business development companies and specialty finance firms supports small- to mid-sized businesses, which thrive in expanding economies. However, rising interest rates or tighter credit conditions could negatively impact the profitability of its holdings, as these factors may increase borrowing costs and reduce demand for financing. Additionally, regulatory changes in the financial sector could create uncertainty for the ETF's niche focus.
FBDC Top 10 Holdings
FBDC is essentially a pure play on U.S. business development companies, with performance driven by a tight cluster of heavyweight names. Main Street Capital and Ares Capital are doing the heavy lifting, with rising share prices and solid fundamentals helping to pull the fund forward. Sixth Street Specialty Lending and Golub Capital are more steady contributors, adding support without much drama. On the flip side, Blue Owl Capital and FS KKR Capital have been lagging, acting like a bit of an anchor. Overall, this is a concentrated, income-focused bet squarely on U.S. specialty finance.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Main Street Capital | 12.80% | $4.93M | $5.72B | 2.97% | 75 Outperform | |
| Hercules Capital | 11.05% | $4.25M | $3.37B | -12.39% | 79 Outperform | |
| Ares Capital | 9.88% | $3.80M | $14.24B | -14.83% | 80 Outperform | |
| Sixth Street Specialty Lending | 9.00% | $3.46M | $2.07B | -1.92% | 75 Outperform | |
| Golub Capital Bdc | 8.71% | $3.35M | $3.53B | -14.88% | 71 Outperform | |
| Blackstone Secured Lending Fund | 7.78% | $3.00M | $5.93B | -22.73% | 74 Outperform | |
| Blue Owl Capital | 5.42% | $2.09M | $6.13B | -19.27% | 69 Neutral | |
| Barings BDC | 4.76% | $1.83M | $955.89M | -9.43% | 76 Outperform | |
| New Mountain Finance | 4.40% | $1.69M | $888.17M | -26.54% | 66 Neutral | |
| FS KKR Capital | 4.11% | $1.58M | $3.86B | -41.04% | 58 Neutral |
FBDC Technical Analysis
Negative
―
Price Trends
19.22
Negative
19.09
Negative
Market Momentum
<0.01
Positive
44.64
Neutral
14.28
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FBDC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 19.37, equal to the 50-day MA of 19.22, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBDC.
FBDC Peer Comparison
Comparison Results
Performance Comparison
FBDC
FT Confluence BDC & Specialty Finance Income ETF
19.08
-0.83
-4.17%
CEPI
REX Crypto Equity Premium Income ETF
―
―
―
GABF
Gabelli Financial Services Opportunities ETF
―
―
―
TFNS
T. Rowe Price Financials ETF
―
―
―
LBO
WHITEWOLF Publicly Listed Private Equity ETF
―
―
―
AAUM
Tema Alternative Asset Managers ETF
―
―
―
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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