Northern Trust AM launches listed private equity ETF

Fifth ETF launch in Europe

Northern Trust Asset Management is expanding its range of ETFs with the launch of a listed private equity ETF, ETF feeds 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 sector.

The index incorporates a Private Equity Purity Score which ranks companies on a scale of 0 to 5 based on their exposure to the private equity theme.

To be included in the index, the primary business focus must be private equity, which includes companies engaged in leveraged or management buyouts.

The top 10 holdings currently include companies 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 amassed $1.2 billion in assets under management (AUM) since its launch in March 2007, while the Xtrackers LPX Private Equity Swap UCITS ETF (XLPE ) has $418 million in assets under management.

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).

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