ProShares, a premier provider of alternative ETFs, today announced the launch of ProShares Global Listed Private Equity ETF (BATS: PEX). PEX is the first globally diversified ETF focused on companies that invest primarily in private enterprises.
“Private equity has long been a staple of institutional and high-net-worth individuals’ portfolios; for other investors, it’s been difficult to access,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. “PEX offers access to global private equity with the liquidity, transparency and cost effectiveness of an ETF.”
About Listed Private Equity
Private equity investment strategies typically aim to generate return by identifying private enterprises with potential and providing them with long-term capital to expand, introduce new products or restructure. Private equity investing traditionally has been available through limited partnerships, which can have high minimums and other restrictions. “Listed private equity” refers to publicly traded companies that invest capital in privately held enterprises. PEX focuses on direct listed private equity—companies that invest directly in private enterprises.
About the LPX Direct Listed Private Equity Index
PEX tracks the LPX Direct Listed Private Equity Index, a portfolio of up to 30 listed private equity companies worldwide whose primary business is direct investments in private equity. The index methodology generally defines direct private equity investments as investments in the equity, mezzanine or debt facility of a private company. It excludes companies whose primary business is private equity fund management. The index was developed by LPX Group, a leading provider of listed private equity indexes that is actively involved in private equity research.
Offering the nation's largest lineup of alternative ETFs, ProShares helps investors to go beyond the limitations of conventional investing and face today’s market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost effectiveness of an ETF. ProShares' lineup of 140 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
ProShares has the largest lineup of alternative ETFs in the United States according to Financial Research Corporation ("FRC"), based on analysis of all the known alternative ETF providers (as defined by FRC) by their number of funds and assets (as of 3/31/2012).
Investing involves risk, including the possible loss of principal. ProShares are non-diversified and each entails certain risks, which may include imperfect benchmark correlation and market price variance that can increase volatility and decrease performance. Please see the summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Investments in smaller companies typically exhibit higher volatility. International investments may also involve risk from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, and from economic or political instability.
There are risks in investing in listed private equity companies (LPEs), which encompass business development companies (BDCs) and other financial institutions or vehicles whose principal business is to invest in and provide financing to privately held companies. Little public information may exist for private or thinly traded companies, and investors may not be able to make fully informed investment decisions. Private equity securities carry risks related to unclear ownership, market access and market opaqueness. BDCs are subject to the Investment Company Act of 1940 but are exempt from many of its regulatory constraints. The fund is subject to risks faced by BDCs to the same extent as its index is so concentrated. A significant portion of the index is composed of BDCs or other investment companies. The fund may not acquire greater than 3% of the total outstanding shares of such companies. As a result, the fund’s ability to purchase certain securities in the proportions represented in the index could be inhibited. The fund may be required to use sampling techniques in these circumstances, which could increase correlation risk. For more on the fund, LPEs, BDCs, correlation and other risks, please read the prospectus.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Obtain them from your financial advisor or broker/dealer representative or by visiting ProShares.com.
"LPX® Direct Listed Private Equity Index" and "LPX®" are registered trademarks of LPX GmbH and have been licensed for use by ProShares. ProShares have not been passed on by LPX GmbH as to their legality or suitability. ProShares based on the LPX® Direct Listed Private Equity Index are not sponsored, endorsed, sold, or promoted by LPX GmbH, and it makes no representation regarding the advisability of investing in ProShares. THIS ENTITY AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.