ETF Evaluator:
FT Confluence BDC & SpecialtyFinacIncETF ()
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(as of Aug 26)
Best Performing in Financial Over the Last Year
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ETF Details
FT Confluence BDC & SpecialtyFinacIncETF Overview
FT Confluence BDC & SpecialtyFinacIncETF (FBDC) is an actively managed Sector Equity Financial exchange-traded fund (ETF). First Trust launched the ETF in 2007.
The investment seeks a high level of current income.; as a secondary objective, the fund seeks an attractive total return.
Under normal market conditions, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of equity securities of business development companies (“BDCs”) and other specialty finance companies that Confluence Investment Management LLC, the fund's investment sub-advisor (the “Sub-Advisor”), believes offer attractive opportunities for income and capital appreciation. The fund is non-diversified.
About FT Confluence BDC & SpecialtyFinacIncETF (FBDC)
There are 2 members of the management team with an average tenure of 1.08 years: Mark Keller (2025) and David Miyazaki (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and MarketVector US BDC Liquid TR USD index with a weighting of 100%. FT Confluence BDC & SpecialtyFinacIncETF has 21 securities in its portfolio. The top 10 holdings constitute 76.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
FT Confluence BDC & SpecialtyFinacIncETF is part of the Equity global asset class and is within the Sector Equity ETF group. FT Confluence BDC & SpecialtyFinacIncETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 91.9% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). FT Confluence BDC & SpecialtyFinacIncETF has 6.0% of the portfolio in cash.
Assets Under Management
The fund has $33 million in total assets, which is below the $2 billion average for the Financial category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FBDC Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The FT Confluence BDC & SpecialtyFinacIncETF expense ratio is high compared to funds in the Financial category. FT Confluence BDC & SpecialtyFinacIncETF has an expense ratio of 12.44%, which is 716% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. FT Confluence BDC & SpecialtyFinacIncETF has a portfolio turnover rate of 28%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 27% for the Financial category.
Recently, in the month of July 2026, FT Confluence BDC & SpecialtyFinacIncETF returned 0.1%, which earned it a grade of F, as the Financial category had an average return of 4.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
FT Confluence BDC & SpecialtyFinacIncETF has a trailing yield of 12.35%, which is above the 3.85% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
FT Confluence BDC & SpecialtyFinacIncETF Grades
Year to date, the ETF has returned -7.2%, 12.0 percentage points worse than the category, which translates into a grade of F. The fund has returned -12.1% over the past year (grade of F), 11.6% over the past three years (grade of D) and 8.5% per year over the past five years (grade of C) and 4.7% per year over the past 10 years (grade of F).
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FBDC Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FBDC Return (NAV) | 0.1% | -4.4% | -12.1% | 11.6% | 8.5% | 4.7% |
| FBDC Return (Price) | -0.1% | -4.5% | -11.6% | 11.6% | 8.5% | 4.7% |
| NAV +/- Price Return | 0.179% | 0.060% | -0.542% | 0.030% | 0.018% | 0.008% |
| Financial Avg | 4.6% | 6.3% | 9.3% | 15.6% | 8.6% | 10.8% |
| FBDC Grade (NAV) | F | F | F | D | C | F |
| +/- Category (NAV) | -4.5% | -10.7% | -21.4% | -4.0% | -0.2% | -6.1% |
| FBDC Tax-Cost Ratio | na | na | 4.5% | 6.5% | 5.1% | 4.7% |
FBDC Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FBDC Return (NAV) | -7.2% | 19.7% | 16.2% | 26.2% | -13.9% | 34.2% | -33.5% | 30.3% | -8.3% | -0.1% | 27.4% |
| FBDC Return (Price) | -7.3% | 19.7% | 16.2% | 26.2% | -13.9% | 34.2% | -33.5% | 30.3% | -8.3% | -0.1% | 27.4% |
| NAV +/- Price Ret | 0.008% | -0.001% | 0.000% | 0.000% | 0.000% | 0.000% | 0.000% | 0.0% | 0.0% | 0.0% | 0.0% |
| Financial Avg | 4.8% | 11.7% | 23.9% | 13.9% | -13.8% | 32.1% | -1.0% | 28.6% | -12.8% | 14.2% | 22.3% |
| FBDC Grade (NAV) | F | A | D | A | C | C | F | B | A | F | B |
| +/- Category | -12.0% | 8.0% | -7.7% | 12.3% | -0.1% | 2.1% | -32.5% | 1.7% | 4.5% | -14.3% | 5.0% |
| Risk Measures | |
| Beta: | 0.46 |
| R-Squared: | 11% |
| Standard Deviation: | 17.4% |
| Category Risk Index: | 1.01 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 1.42 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 12.4% |
| Total Assets: | $ 34 Mil |
| Share Class Assets: | $ 34 Mil |
| Turnover: | 28.0% |
| Expense Ratio: | 12.44% |
| Index Fund: | No |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.1 years | |||
| Average Tenure: 1.1 years | |||
| Managers (Year): Keller Mark (2025), Miyazaki David (2025) | |||
Portfolio Composition (as of 7/30/26)
| # of Holdings: | 21 |
| % in Top 10 Holdings: | 76.2% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 91.9% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 2.1% |
| Cash: | 6.0% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | First Trust |
| Phone Number: | 800-621-1675 |
| Website: | |
| Inception Date: | May 25, 2007 |
Expenses and Fees
| Expense Ratio (%): | 12.44% (Rating: High) |
| Category Average Expense Ratio (%): | 1.52% |
