A new exchange traded note (ETN) issued by UBS tracks business development companies, giving investors more choice in the private-equity category.

E-TRACS Linked to the Wells Fargo Business Development Company Index ETN (NYSEArca: BDCS) follows a relatively new index launched by the bank.

Top holdings in the tracking index include Ares Capital Corp., American Capital Ltd. and Apollo Investment Corp.

BDCS has an expense ratio of 0.85%, and will give exposure to 26 BDC’s with one investment.

“Business development companies 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,” UBS said in a press release. “A BDC lends to small and midsized companies at high yield equivalent rates and often takes equity stakes in these companies.”

Tisha Guerrero contributed to this article.

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