PSP Yields 8.00% And Outperforms The S&P, But What Are The Risks?

Summary
This Global Listed Private Equity Portfolio is under the radar with little institutional ownership.
With an easy to analyze portfolio of 64 holdings we are slightly surprised by the lack of "buzz".
We analyze this attractive performing ETF, notice a similarity with MLPs that outperform when rates rise, and provide our recommendation.
The PowerShares Global Listed Private Equity Portfolio ETF (NYSEARCA: PSP), is a well established fund, (inception 10/24/2006) with an attractive track record. It had a serious correction during the financial crises but has weathered the storm and come back significantly, similar to the holdings of the underlying components.
The ETF is based upon an index called the Red Rocks Global Listed Private Equity Index. Red Rocks Capital is an asset management firm based in Golden, Colorado. Red Rocks specializes in listed private equity securities. They are owned by ALPS, a mutual fund and asset servicing and gathering firm based in Denver, Co. They are in turn a wholly owned subsidiary of DST Systems (NYSE: DST), a software development firm based in Kansas City, Missouri.
The ETF presently has 64 holdings while the index with a ticker symbol of {GLPEXUTR} has anywhere from 62-70 or an unknown number of holdings. We will explain why shortly. According to the sponsor PowerShares:
The PowerShares Global Listed Private Equity Portfolio is based on the Red Rocks Global Listed Private Equity Index. The Fund will normally... Read more