“With BUY and BUYN, investors can access the type of strategy that historically has been offered by private equity firms to a more limited group of investors in higher cost vehicles,” John Love, President and CEO of USCF, said in a note. “Now, we have developed ETFs that increase access for investors to returns intended to be similar to those of private equity strategies – another alternative asset class that traditionally has been unavailable to retail investors. BUY and BUYN – provide investors with a new way to diversify along with the liquidity, efficiency, and cost benefits attributable to ETFs.”
BUY tries to reflect the performance of the SummerHaven Private Equity Strategy Index, which attempts to replicate the long-term (i.e., 10 years or more) return characteristics of diversified private equity allocations, according to a prospectus sheet. The fund utilizes a proprietary methodology that focuses on companies with low enterprise value to earnings before interest, taxes, depreciation, and amortization (“EV /EBITDA”) ratios; low net equity issuance; low market capitalization; and moderate profitability. The underlying index includes the greater of 200 companies or 20% of such investable universe and is equally-weighted and rebalanced annually.
BUYN tries to reflect the performance of the SummerHaven Private Equity Natural Resources Strategy Index, which attempts to replicate the long-term return (i.e., return over 10 years or longer) of diversified natural resources private equity allocations. The fund implements a proprietary methodology that targest companies with low enterprise value to earnings before interest, taxes, depreciation, and amortization (EV / EBITDA) ratios; low net equity issuance; low market capitalization; and moderate profitability. The ETF includes the greater of 80 companies or 40% of such investable universe and is equally-weighted and rebalanced annually.
For more information on new fund products, visit our new ETFs category.