{
  "id": 2629389,
  "title": "Want $10,000 a Year on $100K? The Private-Credit Funds Banks Can’t Compete With Pay 10%+",
  "url": "https://urgent.news/2026/08/22/want-10-000-a-year-on-100k-the-private-credit-funds-banks-cant",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-22T19:01:01.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/want-10-000-100k-private-190101327.html"
  },
  "original_language": "en",
  "account": "For those seeking $10,000 annually from a $100,000 investment, private credit funds offered by banks may be a more competitive option compared to the BIZD ETF. BIZD's expense ratio of 0.89% increases to double digits after accounting for the Acquired Fund Fees and Expenses (AFFE). In contrast, ARCC delivers a 231% return over 10 years, while PBDC provides a comparable BDC exposure at a lower expense ratio of 0.13%. CSWC, with a 99% first-lien book, offers a forward yield of 9.26%. BDC dividends are taxed as ordinary income, making an IRA the preferred account for rotating out of BIZD into direct holdings. BIZD's dividend has decreased from $1.8190 in 2024 to $1.5236 over the past year, with a payout ratio of 142.70%, indicating more distribution than earnings. The top three alternatives are ARCC, MAIN, and CSWC. ARCC's 9.51% yield and 230.92% 10-year return outperform BIZD's 5.22% yield and 111.88% return. MAIN's 5.22% yield, 18.9% ROE, and 20 consecutive supplemental dividends make it an attractive option. CSWC's 9.26% yield, backed by 99% first-lien senior secured debt, yields a 9.26% forward payout. A blended approach of these funds can provide an 8% to 10% distribution yield while avoiding the AFFE leakage, reaching the $10,000 income target on $100,000 without incurring wrapper fees.",
  "summary": null,
  "key_points": [
    "Private credit funds like ARCC and CSWC offer 10%+ yields compared to BIZD's 5.22%.",
    "ARCC's 230.92% 10-year return and MAIN's 18.9% ROE outperform BIZD's 111.88%.",
    "Blending these funds can achieve 8% to 10% distribution yield without wrapper fees."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}