Northern Trust launches listed private equity ETF in Europe

Northern Trust Asset Management has launched an exchange-traded fund (ETF) in Europe that offers investors exposure to the global listed private equity market.

The FlexShares Listed Private Equity Ucits ETF, listed on the Euronext Amsterdam Stock Exchange, tracks the Foxberry Listed Private Equity SDG Screened USD Net Total Return Index of approximately 100 listed private equity securities.

Northern Trust says it developed the fund in response to growing demand for an investment that provides private equity exposure through a low-cost, liquid fund.

Marie Dzanis, head of Northern Trust Asset Management for Emea, said the publicly traded private equity space has traditionally been difficult to enter as an asset class.

The new product, she said, “will provide investors with the opportunity to gain exposure to alternative asset classes to support portfolio diversification and potentially generate excess returns.”

The fund, which has a total expense ratio (TER) of 0.40%, is Northern Trust’s fifth ETF to list in Europe since its launch in the region in March last year.

It is believed to be the third European ETF in Europe to offer exposure to the listed private equity market, following the launch of similar products by Blackrock and DWS.

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Mary I. Bruner