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PPE

Opta S&P Listed Private Equity Index Net Return

This ETN offered by Lehman Brothers is designed to track the S&P Listed Private Equity Index Net Return, which contains the stocks of 30 listed private equity companies. The value of the index is determined by changes in the stock prices of the underlying companies and dividends minus applicable withholding taxes. The index is rebalanced semi-annually.

The ETN trades on the NYSE ARCA exchange under the symbol PPE, and charges an expense fee of 0.75%.

Lehman Brothers Lists New ETNs in the Private Equity and Commodities Sectors

Lehman Brothers announced that they are listing three new ETNs tomorrow, which will be their first entries into the rapidly growing exchange traded note market. The offerings are:

  • The Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return ETN, which will trade under the symbol EOH and track corn, soybean meal, soybean oil, soybeans, wheat, coffee, cotton, and sugar future prices. It is designed to spot commodity returns in those markets.
  • The Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN, which will trade under the symbol RAW with a focus on the energy, metals, agriculture and livestock. It is also designed to spot commodity returns in those markets.
  • The Opta S&P Listed Private Equity Index Net Return ETN, which will trade under the symbol PPE and track the S&P Listed Private Equity Index Net Return, which contains the stocks of 30 publicly listed private equity companies.

The private equity ETN is the first ETN to track any type of private equity index, while the commodity ETNs will be competing with existing iPath ETNs from Barclays and Elements ETNs from SEK. The commodity ETNs charge an annual fee of 0.85%, and the private equity ETN charges an annual fee of 0.75%. These fees are lower than the expenses charged by ETFs that cover the same sectors, which may make them more attractive to investors.

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