“The number of quick fund closings has been especially pronounced this year,” Cathy Konicki, a partner at NEPC LLC, said in the article.
Many investors are attracted to private-equity firms because of their cash generating potential. According to Preqin, private-equity firms returned $444 billion to investors in the first half of the year. In the 10-years ended June 30, private-equity funds generated net annualized returns of 14.26%.
PSP shows a trailing 12-month yield of 7.95% and PEX has a 11.29% 12-month yield. PEX is a little over an year old, but PSP has an average annualized 5-year return of 10.9%, not including yields.
PowerShares Global Listed Private Equity Portfolio
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.