PSP: INVESCO GLOBAL LISTED PRIVATE EQUITY ETF
Share-split context: A reverse split was recorded on Jul 17, 2023 with coefficient 0.2. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.
What this ETF is trying to do
The INVESCO GLOBAL LISTED PRIVATE EQUITY ETF (ticker: PSP) is an exchange-traded fund that focuses on the private equity sector. It holds a variety of companies within this space. Based on its Top Holdings, the fund includes companies like 3I Group Ord (5.87%), TPG Inc (5.42%), Blackstone Inc (5.11%), and KKR & Co Inc (4.98%). Because the holdings list is partial, these are just some of the companies in the fund. Please remember that holdings can change over time.
What the numbers show
When looking at how this ETF has performed, it is important to look at two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price changes and any distributions (cash payments) made to investors.
For the year-to-date period, the price return was approximately -16.92%, while the total return was approximately -14.46%. Over the last year, the price return was approximately -19.06%, and the total return was approximately -14.84%. Looking further back, the three-year price return was 9.25%, while the three-year total return was much higher at approximately 31.90%.
This ETF has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not increase the actual value of your investment.
Income and distribution explanation
This ETF provides cash distributions to investors. The distribution yield is approximately 5.64%. This number describes the cash payments relative to the current ETF price. It is important to know that a high distribution yield does not mean an investor earned that same percentage as their total return.
The fund usually pays out distributions quarterly, and it has made four payments in the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe when the Net Asset Value (the actual value of the assets held by the fund) decreases. While a falling market price is a "share-price decline," it does not always mean the NAV has declined.
StockValueFinder uses an erosion-risk score to measure this risk. This ETF has an erosion score of 55, which is labeled as "moderate price erosion." While there is a moderate risk measurement, the fund does not currently have a severe erosion-risk flag.
Pros
• Higher Total Returns over 3 years: The three-year total return (31.90%) was significantly higher than the three-year price return (9.25%), showing the impact of distributions.
• Regular Income: The fund provides a distribution yield of approximately 5.64%.
Cons
• Recent Price Declines: The ETF has seen negative price returns both year-to-date and over the last year.
• Moderate Erosion Risk: The fund has a moderate erosion-risk score of 55.
Beginner takeaway
When looking at an ETF like PSP, it is helpful to distinguish between the share price and the total return. A high distribution yield can provide cash, but it is not a guarantee of overall profit, especially if the share price is declining. Always look at the total return to see how both price changes and distributions work together.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | 3I GROUP ORD | n/a | 5.87% |
| 2 | TPG INC ORDINARY SHARES CLASS A | TPG | 5.42% |
| 3 | BLACKSTONE INC | BX | 5.11% |
| 4 | KKR & CO INC ORDINARY SHARES | KKR | 4.98% |
| 5 | SOFINA SA | n/a | 4.74% |
| 6 | EQT AB ORDINARY SHARES | n/a | 4.64% |
| 7 | HAL TRUST | n/a | 4.61% |
| 8 | n/a | OWL | 4.50% |
| 9 | CVC CAPITAL PARTNERS PLC | n/a | 4.35% |
| 10 | PARTNERS GROUP HOLDING AG | n/a | 4.07% |