The new ETN began trading on NYSE Arca under the ticker symbol BDCS.
UBS explained in a press release that BDCs are public vehicles that invest in private equity and debt and were created to increase financing available to small businesses. They function much like private equity funds, although BDCs allow various investors, regardless of size, to participate. A BDC lends to small and midsized companies at high yield equivalent rates and often takes equity stakes in these companies.
The Wells Fargo Business Development Company Index is comprised of 26 BDCs and is a float adjusted, capitalization-weighted index that is intended to measure the performance of BDCs that are publicly listed, satisfying specified market capitalization and other eligibility requirements.More information is at http://www.ubs.com/e-tracs.