The ETN began trading today on NYSE Arca under the ticker symbol BDCS.
UBS Investment Bank managing director and US head of Equity Structured Products Christopher Yeagley said this is the first exchange-traded note in the market that is focused solely on Business Development Companies. Investors in this new ETN will gain direct, convenient access to a diversified index of BDCs.
"We are pleased to partner once again with Wells Fargo to bring this innovative ETN to market," Yeagley said.
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.
