ProShares Launches Listed Private Equity ETF
February 28 2013 - 10:47AM
Business Wire
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.
About ProShares
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.