The new fund will be competing directly with PSP. The PowerShares ETF leans toward smaller companies, with 53.0% in mid-caps, 24.3% in small-caps and 19.8% in micro-caps. Moreover, it has a 68.9% weighting in financial stocks. The ETF has a high 3-year standard deviation of 23.7, compared to the MSCI World Index of 16.9%. While PSP shows greater volatility, it gained 30.4% last year to nearly double the return of the S&P 500.
PSP has a 2.32% expense ratio.
Earlier this month, Van Eck Global launched the Market Vectors BDC Income ETF (NYSEArca: BIZD), which tracks business development companies. [Market Vectors Adds Specialized Income ETF]
PowerShares Global listed Private Equity Portfolio
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.