Northern Trust Asset Management has expanded its ETF range with the launch of a listed private equity ETF, ETF Stream can reveal.
The FlexShares Listed Private Equity UCITS ETF (FLPE) is listed on Euronext Amsterdam with a total expense ratio (TER) of 0.40%.
Physically-replicated, FLPE tracks the Foxberry Listed Private Equity SDG Screened USD Net Total Return index which currently offers exposure to 93 listed securities in the private equity space.
The index integrates a Private Equity Purity Score which ranks companies on a scale from 0-5 based on how much exposure they have to the private equity theme.
To be included in the index, the main business purpose must be private equity which includes companies engaged in leveraged or management buyouts.
The top 10 holdings currently include firms such as KKR, Blackstone and Brookfield Asset Management.
FLPE is the third ETF in Europe to offer direct exposure to the listed private equity market. The largest is the iShares Listed Private Equity UCITS ETF which has gathered $1.2bn assets under management (AUM) since launch in March 2007 while the Xtrackers LPX Private Equity Swap UCITS ETF (XLPE) has $418m AUM.
FLPE is Northern Trust AM’s fifth ETF since entering the European market in March with the launch of two smart beta climate ESG ETFs, the FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF (QVFD) and the FlexShares Developed Markets High Dividend Climate ESG UCITS ETF (QDFD).