Sterling Capital Files Hedged BDC Income ETF

The Sterling Capital Hedged BDC Income ETF is an actively managed fund focused primarily on publicly traded business development companies and, to a lesser extent, BDC debt. Guardian Capital will help select high-quality BDCs using credit, valuation and stress-testing analysis, favoring larger franchises and first-lien lenders. The ETF will also use covered calls on up to 100% of its portfolio to generate income, alongside protective puts and put spreads designed to limit downside risk. The strategy may sacrifice some upside in strong markets and will concentrate in financial services.