UBS Investment Bank announced today that it has added to its suite of E-TRACS Exchange Traded Notes (“ETNs”) with a first-to-market E-TRACS linked to the Wells Fargo Business Development Company (“BDC”) Index, offering diversified exposure to BDCs with the convenience of an exchange traded security. The ETN began trading today on NYSE Arca under the ticker symbol (NYSE:BDCS).
“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,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “We are pleased to partner once again with Wells Fargo to bring this innovative ETN to market.”
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.
E-TRACS belong to an innovative class of investment products offering access to markets and strategies that had not previously been readily available to investors, and offer unique diversification opportunities in a number of different sectors.
UBS has 18 other existing E-TRACS ETNs – 10 that track the performance of various UBS Bloomberg CMCI indexes, like platinum, silver, gold, livestock, food, etc; one that tracks the total return of the Dow Jones-UBS Commodity Index; one that is linked to the S&P 500 Gold Hedged Index; one linked to the Alerian MLP Infrastructure Index; one that offers 2x leveraged exposure to the Alerian MLP Infrastructure Index; one linked to the Alerian Natural Gas MLP Index; one that offers 1x monthly short exposure to the Alerian MLP Infrastructure Total Return Index; one linked to the Wells Fargo MLP Index; and one linked to the S&P 500 VIX Term-Structure Index.
E-TRACs are senior unsecured notes issued by UBS AG, are traded on NYSE Arca, and can be bought and sold through a broker or financial advisor. An investment in E-TRACS is subject to a number of risks, including the risk of loss of some or all of the investor’s principal. For more information about E-TRACs, please visit www.ubs.com/e-tracs.
The contents of any website referred to in this communication are not part of, or incorporated by reference in, this communication. UBS has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement for the offering of the E-TRACS ETNs) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read these documents and any other documents that UBS has filed with the SEC for more complete information about UBS and the offering to which this communication relates. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus and the applicable prospectus supplement by calling toll-free (+1-877-387 2275).
Wells Fargo Business Development Company Index is a trademark of Wells Fargo & Company and has been licensed for use by UBS AG. The E-TRACS ETNs are not issued by, sponsored or advised by Wells Fargo & Company or its affiliates and Wells Fargo & Company makes no representation or guarantee regarding the performance of investing in the E-TRACS ETNs. Wells Fargo & Company does not guarantee that the Index referenced by the E-TRACS ETNs has been accurately calculated and shall not have any liability for any error in the calculation.
Notes to Editors
UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. We combine our wealth management, investment banking and asset management businesses with our Swiss operations to deliver superior financial solutions.
UBS is present in all major financial centers worldwide. It has offices in over 50 countries, with about 37% of its employees working in the Americas, 37% in Switzerland, 16% in the rest of Europe and 10% in Asia Pacific. UBS employs about 65,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
Media Enquiries UBS Michelle Lee, +1-212-713-3661 [email protected]