Pacer ETFs, a leading U.S. issuer of free cash flow ETFs, announced the launch of its latest fund, the Pacer PE/VC ETF. PEVC is a rules-based strategy designed to replicate the risk and return characteristics of the FTSE PE/VC Index while also offering the liquidity, transparency, and cost-efficiency of an ETF product.
This fund aims to deliver returns comparable to private equity and venture capital investments without the traditional constraints of illiquidity, extended capital lockups, and high fees. Private markets have seen a surge in demand, driven by their historical track record of attractive returns.
Investors have increasingly sought alternative strategies to diversify portfolios and enhance long-term growth potential. PEVC offers a timely solution by providing cost-effective and liquid access to these sought-after returns.
Unlike traditional private equity and venture capital investments, PEVC offers daily liquidity, allowing investors to integrate it into their portfolios without long-term capital lockups seamlessly. And this makes it an attractive option for those seeking the benefits of private market returns with the flexibility and transparency of public market investments. Plus, the ETF structure may offer tax advantages over direct investments in private equity and venture capital, further enhancing its appeal for institutional and retail investors.
KEY QUOTES:
“This fund offers a new way to tap into private market returns. PEVC bridges the gap between the exclusivity of private equity and venture capital with the accessibility of ETF products.”
- Sean O’Hara, president of Pacer ETF Distributors
“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.”
- Gerald Toledo Global Head of Custom Solutions & Alternatives at FTSE Russell
