Invesco Global Listed Private Equity ETF (PSP)

Invesco Global Listed Private Equity ETF (PSP) Overview

Profile: The Invesco Global Listed Private Equity ETF (PSP) provides investors with exposure to a diversified portfolio of publicly traded private equity and venture capital firms. It primarily focuses on North American and European companies, offering access to the global private equity market without the illiquidity associated with traditional private equity investments.

Objective: PSP aims to track the performance of the Red Rocks Global Listed Private Equity Index, which comprises publicly traded private equity and venture capital firms.

Issuer: Invesco is a leading global investment management firm with over $1.4 trillion in assets under management. The firm has a strong reputation for delivering innovative and high-quality investment solutions. The ETF is managed by a team of experienced portfolio managers with expertise in the private equity space.

Market Share: PSP has a market share of approximately 27% in the listed private equity ETF category.

Total Net Assets: The ETF has approximately $1.5 billion in assets under management.

Moat: PSP's competitive advantages include:

• Diversification: The ETF provides exposure to a diverse range of private equity firms across different regions and strategies.
• Liquidity: PSP is a highly liquid ETF, offering investors easy entry and exit points.
• Track Record: The ETF has a solid track record, outperforming its benchmark index over various time periods.

Financial Performance: PSP has returned 10.15% over the past year and 11.87% annualized over the past three years. It has consistently outperformed its benchmark index, the Red Rocks Global Listed Private Equity Index.

Growth Trajectory: The global private equity market is expected to grow significantly in the coming years, driven by factors such as increasing demand from institutional investors and rising deal activity. PSP is well-positioned to benefit from this growth.

Liquidity: PSP has an average daily trading volume of over 200,000 shares, making it a highly liquid ETF. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics: Factors affecting PSP's market environment include:

• Economic growth: Strong economic growth can lead to increased deal activity in the private equity market, benefiting PSP.
• Interest rates: Rising interest rates can make private equity investments less attractive, potentially impacting PSP's performance.
• Regulatory environment: Changes in regulations could impact the private equity industry and PSP's performance.

Competitors: Key competitors of PSP include:

• iShares Global Listed Private Equity ETF (PSPV): Market share of 23%
• VanEck Global Listed Private Equity ETF (PREV): Market share of 15%

Expense Ratio: The expense ratio for PSP is 0.57%.

Investment Approach and Strategy: PSP employs a passive investment approach, tracking the Red Rocks Global Listed Private Equity Index. The ETF invests in a diversified portfolio of publicly traded private equity and venture capital firms.

Key Points:

• Provides exposure to the global private equity market.
• Offers liquidity and diversification benefits.
• Has a strong track record of outperforming its benchmark.
• Well-positioned to benefit from the growing private equity market.

Risks:

• Market risk: The ETF's performance is tied to the performance of the private equity market, which can be volatile.
• Liquidity risk: While the ETF is generally liquid, there may be times when it is difficult to buy or sell shares.
• Management risk: The ETF's performance depends on the ability of the management team to select and invest in appropriate private equity firms.

Who Should Consider Investing: PSP is suitable for investors seeking exposure to the global private equity market and who are comfortable with the associated risks. It is also appropriate for investors who want a diversified and liquid investment option.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, including financial health, market position, and future prospects, PSP receives a fundamental rating of 8.5 out of 10.

This rating is supported by the ETF's strong track record, competitive advantages, and exposure to a growing market. However, investors should be aware of the risks associated with the private equity market before investing.

Resources:

• Invesco Global Listed Private Equity ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=GPE-US-EN-B
• Red Rocks Global Listed Private Equity Index: https://www.redrockscap.com/products/global-listed-private-equity-index/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.