ETRACS 2xMonthly Leveraged Wells Fargo Diversified Business Development Company Index ETN Series B

Frequently Asked Questions About BDCY

What does BDCY invest in?

The investment seeks to provide a two times leveraged return linked to the compounded monthly performance of the Wells Fargo Diversified Business Development Company Index. The index is designed to measure the performance of BDCs that are listed on NYSE, NYSE MKT or NASDAQ and that satisfy specified market capitalization and other eligibility requirements. The securities seek to approximate the monthly returns that might be available to investors through a leveraged “long” investment in the index constituent securities.

What is the expense ratio of BDCY?

ETRACS 2xMonthly Leveraged Wells Fargo Diversified Business Development Company Index ETN Series B (BDCY) charges an expense ratio of 0.27%. This is the annual fee deducted from fund assets to cover management and operations.

Is BDCY a good long-term hold?

BDCY is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does BDCY's daily reset work?

BDCY rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is BDCY?

ETRACS 2xMonthly Leveraged Wells Fargo Diversified Business Development Company Index ETN Series B (BDCY) manages $1.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is BDCY actively managed or an index fund?

BDCY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.