At a glance
Over the past year it returned −11.2% with distributions reinvested (S&P 500: +11.5%); over three years it returned +2.8% a year. At its worst it fell 35.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low.
The short version
ETRACS Quarterly Pay 1.5x Leveraged MarketVector BDC Liquid Index ETN (BDCX) is a UBS exchange-traded note that aims to return 1.5 times the daily move of the MarketVector BDC Liquid Index, which tracks business development companies (BDCs) that lend to smaller private firms. Payments come quarterly; the trailing yield was 21.24% as of October 27, 2026. Its daily leverage reset and reliance on UBS's credit make it a trading tool, not a long-term holding.
Price history
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BDCX -11.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BDCX price data to Oct 27, 2026 | -11.1% | -11.2% | +2.8% | +0.5% | — | +5.3% |
- Over the year to Oct 27, 2026, BDCX returned -11.2%.
- Its 5-year annualized return was +0.5%.
- Its worst full calendar year was 2022 (-17.8%); its best was 2023 (+35.2%).
- The deepest fall in its price history was 35% (Apr 20, 2022 to Sep 29, 2022), recovered by Dec 14, 2023.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -11.1% |
| 2025 | -10.4% |
| 2024 | +15.3% |
| 2023 | +35.2% |
| 2022 | -17.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.1% over that stretch · deepest drop along the way 35%, back to its old high 14.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.8200 | |
| 2025 | $4.6800 | -5.6% |
| 2024 | $4.9600 | +2.9% |
| 2023 | $4.8200 | -2.8% |
| 2022 | $4.9600 |
How it works
BDCX is not a fund. It is an exchange-traded note (ETN): unsecured debt issued by UBS. The note owns no assets on investors' behalf. Instead, UBS promises a return tied to 1.5 times the MarketVector BDC Liquid Index, minus fees. The index follows business development companies (BDCs), which lend to and invest in smaller private businesses and typically pass most of their income on to shareholders. With no portfolio behind the note, there are no holdings reports, and the index's rules for picking and weighting companies aren't covered here.
The leverage resets every day. Each day, the note aims to rise or fall 1.5 times as much as the index did that day. Over longer periods those daily results compound, so returns can differ sharply from 1.5 times the index's return for the same stretch. They are usually worse when prices swing back and forth without a clear trend. That makes it a tool for short-term trading rather than long-term holding.
Two other mechanics matter. The quarterly payments and the note's value rely on UBS being able to pay, so the bank's credit matters alongside the index. And UBS can redeem the notes early, which could end a position at a time the holder didn't choose.
What it really costs
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 1.5× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
Its 1.5x exposure resets daily and it is unsecured UBS debt, a design built for short-term trading rather than long-term holding.
The trailing yield was 21.24% as of October 27, 2026, paid quarterly, but price swings are large. Price history starts in February 2021, so the 2008 and 2020 crashes aren't covered. In the 2022 bear market, from the stock market's January 3 peak to its October 12 trough, BDCX lost 26.1%. Its deepest drop was 35%, from April 20 to September 29, 2022. It got back to its earlier high on December 14, 2023, about 14.5 months after the low. Its worst calendar year was 2022, a 17.8% loss. Anyone needing to raise cash in such a stretch would have done so near the lows.
Over the five years to October 27, 2026, its return averaged 0.5% a year. Its fee isn't listed here; fees reduce the return, and UBS can redeem the notes early. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one holding.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking 1.5 times the daily moves of the MarketVector BDC Liquid Index who check positions often and understand the daily reset.
- Investors who already know business development companies, which lend to smaller private firms, and want amplified short-term exposure to the group.
- Those comfortable with sharp price swings (volatility of 28.9% over the year to October 27, 2026) in return for quarterly payments.
Look elsewhere if
- Retirees relying on steady income; despite quarterly payments, BDCX fell 35% from April to September 2022 and took about 14.5 months to recover.
- Long-term holders wanting simple BDC exposure; the daily leverage reset means multi-year returns can differ sharply from 1.5 times the index.
- Anyone wanting a fund that owns its investments; BDCX is unsecured UBS debt that owns no assets, and UBS can redeem it early.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is BDCX good for retirement income?
It isn't designed for that role. BDCX pays quarterly, and its trailing yield was 21.24% as of October 27, 2026. But its 1.5x leverage resets daily and it is unsecured UBS debt, a structure built for short-term trading. The price fell 35% between April and September 2022 and took about 14.5 months to recover. Over the five years to October 27, 2026, its return averaged 0.5% a year.
How often does BDCX pay dividends?
BDCX pays quarterly, as its name suggests. Over the year to October 27, 2026, payments totaled $3.82 per share, a trailing yield of 21.24%. Because BDCX is a note rather than a fund, these are payments from UBS under the note's terms, not dividends from stocks it holds. It owns no assets. Past payments don't guarantee future amounts, and every payment depends on UBS's ability to pay.
What's the difference between an ETN and an ETF?
An ETF is a fund that owns assets on its shareholders' behalf. An ETN such as BDCX is unsecured debt of the bank that issues it, here UBS, and it owns no BDC shares. It pays the index-linked return, here 1.5 times the daily move, minus fees, only as long as UBS can pay. That makes the bank's credit important. UBS can also redeem the notes early, and there are no holdings reports to review.
Does BDCX return 1.5x the BDC index over the long run?
Not reliably. BDCX resets its leverage every day, so it targets 1.5 times the MarketVector BDC Liquid Index's daily move, not its return over months or years. As daily results compound, longer-term returns can differ sharply from 1.5 times the index. They are usually worse when prices chop up and down. That is why the structure is meant for short-term trading rather than long-term holding.
How has BDCX performed?
Results have swung widely. BDCX had a 17.8% loss in 2022, a 35.2% gain in 2023, a 15.3% gain in 2024 and a 10.4% loss in 2025. It was down 11.1% in 2026 through October 27. Over the three years to that date it averaged 2.8% a year, and over five years 0.5% a year. Price history begins in February 2021, after the note's June 2020 launch, so earlier results aren't available.