Buyout Bust? Steer Clear of Private-Equity ETF

Last fall I wrote an article about the then-newly listed PowerShares Listed Private Equity Portfolio (PSP Quote) that tracks the Red Rocks Listed Private Equity Index.

I was generally skeptical about whether a fund with a bunch of different companies specializing in different types of deals could offer returns that capture a private-equity effect.

My concern was that the specialties of each of the holdings would be blended away, and the result would look a lot like the market. ...