Barclay’s Global Investors launched an alternative type exchange traded fund (ETF) in the U.K. focusing on private equity. Barclay’s does have a few "different" funds, but this isn’t the first private equity ETF. In the U.S., there is also the PowerShares Listed Private Equity (PSP), which began trading in October. Barclay’s new ETF is based on the S&P Listed Private Equity Index, which listed a week ago and contains 25 stocks – mostly unlisted partnerships.
Richard Kang of Seeking Alpha doesn’t think this type of alternative investing is useful to the smaller, individual investor. He likens it to hedge funds and defensive measures that don’t give "bang for the buck" due to fees and smaller investable amounts. The jury is still out, as hedge fund strategies have had their challenges lately.
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