Startups Another low-correlation investment opportunity, suggested by Paul Christiano
Should private equity ETFs be part of a global market portfolio? PSP, IPRV, and XLPE track private equity indices synthetically, BIZD invests in VC-ish companies. According to the McKinsey Global Private Markets Review 2019 (p. 15), global private equity AUM is $3.4 trillion, or ~2% of the global market portfolio.
Private equity is indeed a part of the global market portfolio, so on priors, it makes sense to invest in private equity. I don’t know much about it, but my understanding is that the existing private equity ETFs don’t do a good job of tracking the market—private equity is, well, private, so you can’t really index it.
Should private equity ETFs be part of a global market portfolio? PSP, IPRV, and XLPE track private equity indices synthetically, BIZD invests in VC-ish companies. According to the McKinsey Global Private Markets Review 2019 (p. 15), global private equity AUM is $3.4 trillion, or ~2% of the global market portfolio.
Private equity is indeed a part of the global market portfolio, so on priors, it makes sense to invest in private equity. I don’t know much about it, but my understanding is that the existing private equity ETFs don’t do a good job of tracking the market—private equity is, well, private, so you can’t really index it.
Hm, interesting, thanks. The fees are also very high, so it may not be worth it.