MALVERN, PA — Pacer ETFs has introduced the Pacer PE/VC ETF (NYSE: PEVC), a fund designed to replicate the risk and return characteristics of the FTSE PE/VC Index, combining the advantages of private equity and venture capital investments with the accessibility and transparency of an ETF product.
The innovative fund aims to provide cost-efficient access to the historically attractive returns of private markets. Unlike traditional private equity and venture capital investments, which often involve long-term capital lockups and high fees, PEVC offers daily liquidity, making it an appealing option for both institutional and retail investors. Additionally, the ETF structure provides transparency and potential tax advantages, further enhancing its appeal.
“This fund offers a new way to tap into private market returns,” said Sean O’Hara, president of Pacer ETF Distributors. “PEVC bridges the gap between the exclusivity of private equity and venture capital with the accessibility of ETF products.”
The demand for exposure to private markets has grown significantly, driven by their track record of higher returns and the growing need for alternative strategies in portfolio diversification. With its rules-based strategy, PEVC offers investors a unique opportunity to harness private equity and venture capital returns without the traditional constraints of minimal liquidity and high entry barriers.
Gerald Toledo, Global Head of Custom Solutions & Alternatives at FTSE Russell, emphasized the value of the partnership, stating, “We are delighted to be working with Pacer to help them provide their clients with coverage of the US Private Equity/Venture Capitalist market, with our FTSE PE/VC Index. For over 30 years, we have been collecting detailed transaction and valuation data on the universe of US private equity and venture capital companies, launching our initial Index in 2012.”
PEVC represents a significant step forward for investors looking to leverage private market returns within a flexible, cost-efficient framework. With its innovative approach and broad appeal, the fund has the potential to reshape how investors integrate private equity and venture capital strategies into their portfolios.
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