Monday, May 6, 2013

PEU ETF's Low Returns, High Fees

The MarketWatch headline read:

Private-equity ETFs aren’t fit for the public 
Commentary: High-cachet, high-cost offerings don’t live up to their billing 

The article went on to say Private Equity ETF's have poor long term returns, in direct contrast to 30% return on equity numbers bandied about by The Carlyle Group's David Rubenstein.  

The piece also stated PEU ETF's have high fees.  It will be interesting to see if individual investors end up like public pension funds, chasing promises of high returns