Today's new ETF listings from around the world.
USAUSCF Advisers lists private equity targeting ETFs
USCF Advisers is listing two new ETFs that aim to track companies likely to be of interest to private equity firms. They are:
- USCF SummerHaven Private Equity Strategy Index Fund (BUY)
- USCF SummerHaven Private Equity Natural Resources Strategy Index Fund (BUYN)
BUY will invest in at least 200 companies, selecting any with a market cap between $100 million and $10 billion. BUY's index is equally weighted but rebalanced only once a year.
BUYN adds a natural resources element and looks only at companies in the natural resources sector. BUYN invests in 80 companies from a smaller universe of 400 companies.
Both funds cannot invest direct in private equity businesses.
While there are ETFs that track private equity companies, these appear to be the first that track companies judged as likely to be of interest to private equity. These ETFs make two interesting gambits. The first is that which companies private equity firms might be interested in can be broken down into a formula or index. The second, is that companies with characteristics that endear themselves to private equity firms are likely to grow in value. There is good evidence to support the second of these gambits; less evidence to support the first. As companies in any index can, at least in principle, be acquired by private equity, it will be interesting to see how successful this indexing is.
FranceLyxor lists a Eurozone minimum variance ETF
Lyxor is listing a new minimum variance ETF, the Lyxor FTSE EMU Minimum Variance UCITS ETF (MVMU). MVMU will track the FTSE Developed Eurozone Minimum Variance Net Tax Index, which picks Eurozone companies while reducing index volatility. Volatility is reduced by looking at historical variance, the index factsheet says. Lyxor already has two minimum variance ETFs, but they target Europe rather the Eurozone (MVAE) and the US (MVAU).