ETF Risk Report: PSP Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors
Invesco Global Listed Private Equity ETF Gray Swan Event Risks exist for every equity held by PSP. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur infrequently, but Gray Swan Event Factor for PSP 1.17% consistently for all equities. Equities account for 90.36% of PSP’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for PSP following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the PSP equity portfolio is 1.17%. However, individual equity risks vary signi cantly. This report helps investors know their risk exposure.
Inception Date: 10/24/2020 Year-to-Date Return: 8.26% The Invesco Global Listed Private Equity ETF seeks to track the investment results of the Red Rocks Global Net Assets: $209m 1-Year Return: 86.26% Listed Private Equity Index, which is composed of includes securities, ADRs and GDRs of 40 to 75 private equity Price: $14.51 3-Year Return: 12.28% companies, including business development companies Net Asset Value (NAV): $14.51 5-Year Return: 14.16% (BDCs), master limited partnerships (MLPs) and other vehicles whose principal business is to invest in, lend Net Expense Ratio: 1.59% Yield: 3.55% capital to, or provide services to privately held companies. The Fund and the Index are rebalanced and reconstituted As of: 03/31/2021 quarterly.
Company Ticker Held Current GSEF Category Value Top Holdings by Value
Wesfarmers Ltd WES Long - NA $13.7m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Sep 24, 2021. Partners Group Hold... PGHN Long - NA $13.2m Investors should invest in ETFs only when they adequately Prosus /Eur/ BJDS7L3 Long - NA $12.2m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Kkr & Co. L.P. KKR Long 0.49% Low $12.2m do NO traditional risk analysis on equities in their fund. Blackstone Group L.P. BX Long 0.55% Low $11.9m Our Gray Swan Event Factors are meant to inform investors of signi cant traditional accounting and Eqt Ab BJ7W9K4 Long - NA $10.7m managerial risks for the equities in each ETF.
Information Service... III Long 0.59% Low $9.86m ETF Risk Reports are published quarterly on dedicated Marathon Oil Corp. MRO Long 0.75% Low $6.45m platforms like Factset, Re nitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Carlyle Group Inc. CG Long 0.65% Low $6.44m For more details contact: [email protected] Iac/Interactivecorp IAC Long - NA $6.04m
Company Ticker Held Current GSEF Category Value Riskiest Holdings
Stepstone Group Inc. STEP Long 9.62% High $3.93m This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Sep 24, 2021. Graham Holdings Co. GHC Long 1.66% Low $3.99m The average equity GSEF across 6,500 public equities is Regions Financial C... RF Long 0.92% Low $4.16m 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Hamilton Lane Inc. HLNE Long 0.82% Low $4.37m extreme risks. Marathon Oil Corp. MRO Long 0.75% Low $6.45m Gray Swan Event Factors are derived from skilled analysts charting 15 years of negative gray swan event disclosures Mcewen Mining Inc. MUX Long 0.73% Low $510k against stock price declines following such disclosures. A Gray Swan Event Factor is an assessment of the Carlyle Group Inc. CG Long 0.65% Low $6.44m likelihood of, and 12-month price risk for, gray swan Information Service... III Long 0.59% Low $9.86m events for each equity.
Blackstone Group L.P. BX Long 0.55% Low $11.9m
Cannae Holdings, Inc. CNNE Long 0.53% Low $3.5m
Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This table lists the equity holdings for Invesco Global Listed Private Equity ETF ranked by highest GSE Factor (riskiest rst). We list all equities (US and foreign) for this ETF. However, some foreign listings only show via a ticker.
To further evaluate risks, you can access details for each company by opening its Brief Watchdog Report available for viewing and pdf download. The report is free to readers for their personal consumption and it includes the executive summary data pulled from the full Watchdog Report.
To learn more about the full Watchdog and GSEF Reports go to last page or visit watchdogresearch.com.
Company Access Details Ticker Held Current GSEF Category Value
Stepstone Group Inc. Watchdogresearch.com/watchdog/$STEP STEP Long 9.62% High $3.93m
Graham Holdings Co. Watchdogresearch.com/watchdog/$GHC GHC Long 1.66% Low $3.99m
Regions Financial Corp. Watchdogresearch.com/watchdog/$RF RF Long 0.92% Low $4.16m
Hamilton Lane Inc. Watchdogresearch.com/watchdog/$HLNE HLNE Long 0.82% Low $4.37m
Marathon Oil Corp. Watchdogresearch.com/watchdog/$MRO MRO Long 0.75% Low $6.45m
Mcewen Mining Inc. Watchdogresearch.com/watchdog/$MUX MUX Long 0.73% Low $510k
Carlyle Group Inc. Watchdogresearch.com/watchdog/$CG CG Long 0.65% Low $6.44m
Information Services Group Inc. Watchdogresearch.com/watchdog/$III III Long 0.59% Low $9.86m
Blackstone Group L.P. Watchdogresearch.com/watchdog/$BX BX Long 0.55% Low $11.9m
Cannae Holdings, Inc. Watchdogresearch.com/watchdog/$CNNE CNNE Long 0.53% Low $3.5m
Atn International, Inc. Watchdogresearch.com/watchdog/$ATNI ATNI Long 0.51% Low $1.72m
Kkr & Co. L.P. Watchdogresearch.com/watchdog/$KKR KKR Long 0.49% Low $12.2m
Oaktree Specialty Lending Corp. Watchdogresearch.com/watchdog/$OCSL OCSL Long 0.27% Low $1.18m
Capital Southwest Corp. Watchdogresearch.com/watchdog/$CSWC CSWC Long 0.27% Low $1.03m
Wesfarmers Ltd - WES Long - NA $13.7m
Partners Group Holding Ag - PGHN Long - NA $13.2m
Prosus /Eur/ - BJDS7L3 Long - NA $12.2m
Eqt Ab - BJ7W9K4 Long - NA $10.7m
Iac/Interactivecorp Watchdogresearch.com/watchdog/$IAC IAC Long - NA $6.04m
Kinnevik Ab - BNKF607 Long - NA $5.06m
Onex Corporation - ONEX Long - NA $4.18m
Ares Capital Corp - ARCC Long - NA $4.17m
Intermediate Capital Group - ICP Long - NA $4.03m
Fosun International Ltd - 656 Long - NA $3.86m
Missfresh Ltd Watchdogresearch.com/watchdog/$MF MF Long - NA $3.38m
Fs Kkr Capital Corp - 302635206 Long - NA $3.35m
Owl Rock Capital Corp Common Stock - 69121K104 Long - NA $2.93m
Merian Chrysalis Investment - BGJYPP4 Long - NA $2.82m
Main Street Capital Corp - MAIN Long - NA $2.39m
Hercules Capital Inc - HTGC Long - NA $2.39m
Gimv Nv - GIMB Long - NA $2.37m
Goldman Sachs Bdc Inc - GSBD Long - NA $2.34m
Schouw & Co - SCHO Long - NA $2.34m
Golub Capital Bdc Inc - GBDC Long - NA $2.3m
Seven Group Holdings Ltd - SVW Long - NA $2.29m
Ip Group Plc - IPO Long - NA $2.28m
Prospect Capital Corp - PSEC Long - NA $2.27m
Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Company Access Details Ticker Held Current GSEF Category Value
Bure Equity Ab - BURE Long - NA $2.23m
Ratos Ab B Shs - RATOB Long - NA $2.17m
Puretech Health Plc Watchdogresearch.com/watchdog/$PRTC PRTC Long - NA $2.09m
Jafco Co Ltd - 8595 Long - NA $2.07m
Digital Garage Inc - 4819 Long - NA $1.88m
Tamburi Investment Partners - TIP Long - NA $1.81m
Sixth Street Specialty Lending - 83012A109 Long - NA $1.78m
New Mountain Finance Corp - NMFC Long - NA $1.78m
Aurelius Equity Opportunitie - AR4 Long - NA $1.75m
Vnv Global Ab Common Stock Sek 0.1 - BMTCQY6 Long - NA $1.68m
Barings Bdc Inc Common Stock Usd - 06759L103 Long - NA $1.19m 0.001
Gladstone Investment Corp - GAIN Long - NA $1.18m
Slr Investment Corp Common Stock Usd - SLRC Long - NA $1.18m 0.01
Italmobiliare Spa - ITM Long - NA $1.16m
Bain Cap Specialty Fin Inc - BCSF Long - NA $1.15m
Tcg Bdc Inc Common Stock Usd - CGBD Long - NA $1.15m
Deutsche Beteiligungs Ag - DBAN Long - NA $1.12m
Apollo Investment Corp Common Stock - AINV Long - NA $1.12m Usd 0.001
Blackrock Tcp Capital Corp Common - TCPC Long - NA $1.12m Stock Usd
Georgia Capital Plc Common Stock - CGEO Long - NA $673k Gbp.01
Suro Capital Corp Common Stock - 86887Q109 Long - NA $592k
Medcap Ab - MCAP Long - NA $562k
Newtek Business Services Cor - NEWT Long - NA $541k
Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This is a story about four people investing in ETFs. They are named Everybody, Somebody, Anybody and Nobody.
Everybody wanted to buy ETFs because ETFs are such great investments. “Not so fast,” said Somebody. “Nobody should buy an ETF without rst understanding the accounting and disclosure risks for the ETF’s basket of stocks.”
Everybody scoffed: “Don’t be silly! What could go wrong? Let’s just BUY immediately! Somebody at the ETF must have done that work for us.” Anybody explained how Everybody was wrong in their thinking: “Most ETF prospectuses speci cally say Nobody at the ETF actually does traditional stock risk analysis.” Everybody read many ETF prospectuses, and, sure enough, Anybody was right! So, while Everybody should know the risks before buying an ETF, Nobody was actually doing it.
Until this report was created.
Watchdog Research, Inc. educates investors on accounting and disclosure risks.
Full Watchdog and Gray Swan Event Factor Reports offer in-depth information about identi ed risks. See more about Watchdog Research Inc. and available subscriptions below.
Watchdog Research, Inc. is an independent research organization that does not make "buy", "sell" or "hold" recommendations and does not trade in public stocks.
About Watchdog Research, Inc.
Watchdog Research, Inc. is an independent research provider and publisher of Watchdog Reports.
Watchdog Research analysts track gray swan events and critical disclosures for over 4,500 public companies. Gray swan events are reliably predictable, yet infrequent disclosures that expose a company's failures in accounting, internal controls, management integrity and which negatively impact stock prices or increase probabilities for a lawsuit.
Watchdog Reports identify red ags, issues, and other anomalies in nancial reporting. The reports contain warning signs, red ags, material disclosures, and peer analysis for use in valuation, risk analysis, due diligence research, and idea generation. Watchdog Reports are designed to assist investment professionals ful ll their duciary or suitability obligations and to help investors, executives, board members, regulators and educators learn what they need to know about publicly traded companies.
Watchdog Research, Inc. is headquartered in Ave Maria, FL, and it utilizes over 75 specialists and analysts to provide accurate and timely information to its readers. So far, it has delivered 300,000 public company reports to over 27,000 individuals, from over 9,000 investment rms and to 4,000+ public company corporate board members.
Watchdog Reports
An annual subscription to Watchdog Reports costs $5,000 per year per individual subscriber (group subscription rates available). Subscriptions provide unlimited access to 4,500+ public company Watchdog Reports. Reports are updated weekly. A subscription can also entitle users to download the reports weekly on Factset, Re nitiv (ex Thomson Reuters), Capital IQ or other platforms. Each company Watchdog Report identi es red and yellow ags, issues and other risks for the named company. A full report includes in-depth details and lists original SEC lings and source documents. Reports contain warning signs, attention ags, material disclosures, and peer analysis for use in valuation, risk analysis, due diligence research, and D&O insurance underwriting.
Gray Swan Event Factor Reports
An annual subscription to our Gray Swan Event Factor Reports costs $8,000 per year per individual subscriber (group subscription rates available). A GSEF annual subscription automatically includes a subscription to our Watchdog Reports. The GSEF is a forward looking valuation factor. It identi es the percent a stock’s price is overstated when accounting for the likelihood of a future negative accounting or disclosure event. These risks are di cult to quantify and tend to be ignored or disregarded as negligible. However, they often lead to substantial losses with each underlying stock. Before buying, selling or recommending a stock, anyone with a duciary or suitability obligation should review the stock’s Gray Swan Event Factor to quantify the stock’s potential losses for future accounting and disclosure risks. GSEF Reports are updated weekly on our website and quarterly on Factset, Re nitiv (ex Thomson Reuters), Capital IQ and other platforms. The full paid version includes detailed break-outs of contributing risk factors, with links to original source materials.
Subscription Information: Subscriptions can be initiated at watchdogresearch.com.
Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272