ETF of the week: Dare to invest in unlisted funds

Good investment ideas are increasingly hard to come by. AI does not yet seem to be able to bring profits to many companies, valuations of technology companies are rather stretched and the golden age of the sector may be over. Luxury goods are in turmoil, China is unable to accelerate sustainably, and inflation is still threatening everyone. Against this backdrop, where the golden thread is hard to find, there is an ETF that invests in private equity companies. These private equity firms specialize in acquiring stakes in or buying up unlisted companies.

ETF selected: iShares Listed Private Equity UCITS ETF

The ETF is exposed to large private equity companies listed on developed markets. This means that when you buy units of this fund, you are not replicating the performance of the companies' portfolios - since the investment is made in companies whose capital is not public - but rather the stock market performance of private equity companies.

The product comprises 77 lines, but the top 10 weightings account for 57.6% of assets under management. These include the UK's Intermediate Capital Group (4.3%) and 3I Group (9.2%), which holds a stake in hard-discount chain Action. There are also the American giants of the sector: Blackstone (7.7%), KKR (7%), Ares Capital (3.8%) and Apollo Global Management (3.5%). There are also Canada's Brookfield (8.4%) and Brookfield Asset Management (3.7%), and Australia's Washington Soul Pattinson & Company (3.2%).

Most of the assets are invested in the United States (47.7%). Other key investment countries include the UK (17.2%), Canada (14.5%), Switzerland (6.8%), Australia (3.2%) and France (3.2%).

Outstandings are satisfactory, at $870 million, providing good liquidity for the product. Fees, however, are fairly high at 0.75%.

ETF identity card :

Assets under management: 870 MEUR

Number of positions: 77

ISIN code: IE00B1TXHL60

Ticker: IPRV

Fees: 0.75