Invesco Global Listed Private Equity ETF (PSP)PSP

ETF Invesco Global Listed Private Equity ETF (NYSE: PSP) Overview:

Profile:

Invesco Global Listed Private Equity ETF (PSP) invests in publicly traded companies globally that have a significant portion of their revenue or earnings derived from investments in privately-held companies. This includes private equity firms, business development companies (BDCs), and other firms with exposure to private equity investments. PSP seeks to track the Indxx Global Listed Private Equity Index (IPE), which comprises companies that meet its criteria across developed and emerging markets.

Objective:

PSP's primary investment objective is to provide investors with exposure to the performance of the global listed private equity market, aiming to track the Indxx Global Listed Private Equity Index (IPE) before fees and expenses.

Issuer:

• Invesco: Invesco is a global asset management company with over $1.4 trillion in assets under management. It has a strong reputation and track record in the market.
• Management: Invesco has a dedicated private markets team with extensive experience managing and researching private equity investments.

Market Share:

PSP is one of the largest listed private equity ETFs, with a market share of approximately 15% within the sector.

Total Net Assets:

PSP has approximately $4 billion in total net assets as of October 26, 2023.

Moat:

PSP benefits from several competitive advantages:

• Global Diversification: Invests across developed and emerging markets, offering broader exposure than some regional competitors.
• Liquidity: The underlying holdings are publicly traded, providing more liquidity than direct private equity investments.
• Cost-Effectiveness: The ETF offers exposure to private equity with lower fees than investing directly or through private equity funds.

Financial Performance:

• Year-to-Date (YTD) Return: +12.54% (as of October 26, 2023)
• 3-Year Annualized Return: +11.47%
• 5-Year Annualized Return: +13.22%

Benchmark Comparison:

PSP has outperformed the IPE Index, its benchmark, in recent years.

Growth Trajectory:

The global listed private equity market has experienced significant growth in recent years, fueled by increased demand for alternative investment strategies. This trend is expected to continue, benefiting PSP.

Liquidity:

• Average Trading Volume: Approximately 250,000 shares per day
• Bid-Ask Spread: Tight bid-ask spread, indicating low trading costs

Market Dynamics:

• Economic Growth: Strong economic growth can benefit private equity investments, leading to higher returns.
• Interest Rates: Rising interest rates may impact valuations of private equity firms, leading to potential volatility in the ETF.
• Regulatory Landscape: Changes in regulations could affect the private equity industry and ETF performance.

Competitors:

• Blackstone Long Term Private Equity Interval Fund (BTCG): Market share - 10%
• Kayne Anderson NextGen Private Equity (KAPG): Market share - 7%

Expense Ratio:

PSP's expense ratio is 0.70%.

Investment Approach and Strategy:

• Strategy: Tracks the Indxx Global Listed Private Equity Index (IPE), offering passive exposure to the sector.
• Composition: Invests in publicly traded companies with significant exposure to private equity, including private equity firms, BDCs, and other investment firms.

Key Points:

• Global exposure to listed private equity market
• Access to an otherwise less accessible asset class
• Potential for higher returns compared to traditional equity markets
• Lower fees compared to direct private equity investments

Risks:

• Volatility: Listed private equity can be more volatile than traditional equities.
• Market Risk: Performance is dependent on the underlying private equity market, which is influenced by various economic factors.
• Liquidity Risk: While more liquid than direct private equity, the ETF's underlying holdings may experience lower trading volumes.

Who Should Consider Investing:

PSP may be suitable for investors seeking:

• Diversification into alternative assets
• Potential for higher returns
• Access to the private equity market with lower costs and minimum investment requirements

Fundamental Rating Based on AI

Based on an analysis of various factors, including financials, market position, future prospects, and risk profile, PSP receives an AI Fundamental Rating of 7 out of 10. The rating considers the ETF's strong performance, global diversification, and competitive moat, but also acknowledges potential volatility and market risks.

Resources and Disclaimers:

This information is based on publicly available data as of October 26, 2023. Please refer to the Invesco Global Listed Private Equity ETF website and prospectus for the latest information. All investment decisions should be made