Private equity ETF: what is really behind it?

Updated on June 18, 2026

There is no such thing as a classic private equity ETF in the literal sense. There are listed private equity ETFs that track publicly traded investment companies. However, you are not buying direct private equity stakes in private target companies with them.

Is there a private equity ETF? The short answer and explanation

The short answer: There are ETFs labeled as private equity, but no classic ETF that directly tracks real private equity.

The reason lies in the mechanics. Private Equity means investing in companies that are not traded on the stock exchange. Such investments are built up over years, developed further, and eventually sold. A classic ETF, by contrast, requires securities that can be valued and traded daily.

This is exactly where the misunderstanding arises. If you are looking for a private equity ETF, you might be looking for access to private companies. However, what you usually find on the stock exchange is access to publicly traded firms that are themselves active in the private equity business.

That can be interesting. It is just a different approach.

What listed private equity ETFs actually track

Listed private equity is the exchange-traded version of the asset class. A listed private equity ETF typically invests in the shares of investment companies, asset managers, or investment firms involved in private equity. Depending on the index, this includes companies that manage private equity funds, hold stakes, or channel capital into private companies. Well-known benchmarks in this area include indices such as the LPX50, as well as products from providers like iShares or Xtrackers, such as an iShares Listed Private Equity UCITS ETF or an Xtrackers LPX Private Equity product. The specific composition, costs, and product details can change, so you should always review the current documents from the respective ETF provider before making a decision.

The most important distinction for you is this: you are buying shares of companies that operate in the private equity business. The private target companies themselves are one step removed.

How these ETFs work

A listed private equity ETF tracks a private equity index that bundles publicly traded companies from the private equity sector. Because these companies are traded on the stock exchange, the ETF can also be bought and sold on a daily basis.

This offers clear advantages: access is straightforward, liquidity is high, and diversification is broader than with a single private equity stock. Furthermore, ETFs are familiar to many investors because they are managed through a brokerage account just like other exchange-traded funds.

The trade-off is the proximity to the stock market. Listed private equity companies fluctuate on the stock exchange, react to interest rates, market sentiment, and corporate news, and can behave similarly to other equity segments during periods of stress. A private equity ETF can provide you with industry exposure, but it does not shield you from stock market volatility.

What they are not

Listed private equity ETFs do not provide direct access to private companies. You are investing in publicly traded companies that operate in the private equity business, and thus indirectly in their business model. This is an important distinction. True private equity takes place away from the stock exchange: funds invest in private companies, support them over several years, and aim to create value through operational development, growth, or a future exit. With a listed private equity ETF, you are closer to the stock market than to the engine room of an individual private equity deal.

In short: A listed private equity ETF can bring the industry into your portfolio, but it does not provide true access to private markets.

Private equity ETF or fund: What is the difference?

The question of private equity ETF versus fund sounds like two similar paths. In practice, they differ significantly.

A listed private equity ETF is liquid, exchange-traded, and indirect. It bundles shares of companies that earn money through private equity. This can be a useful building block if you are intentionally seeking equity exposure to the private equity industry.

A classic private equity fund works differently. It raises capital, invests in private companies, and often holds these stakes for several years. Investors cannot enter or exit daily because the underlying investments themselves are not traded on a daily basis. Private equity funds-of-funds go a step further: they invest in multiple private equity funds, thereby diversifying across different managers, strategies, and vintages.

Terms like private equity secondaries or evergreen funds also belong to this world. Secondaries are existing fund shares or investments sold from one investor to another. Evergreen funds are continuous fund structures that do not operate based on a single closed vintage. Both show that private equity is longer-term and structurally different from an ETF. The difference between private equity and an ETF is therefore not just in the packaging; it lies at the core of the investment: stock markets and equities on one side, private holdings and long-term fund structures on the other.

If you would like to delve deeper into the fundamentals, you can find a broader overview in the Private Equity Guide . And if you are interested in the distinction from start-up investments, the article Private Equity vs. Venture Capital will help you further.

The closer answer to your ETF search: the ELTIF

Those who are actually looking for real access to private markets often find the ELTIF more relevant than the ETF.

An ELTIF is a European fund structure that can provide retail investors with access to private markets. Depending on the fund strategy, it can invest in private equity, infrastructure, or other long-term assets.

Nevertheless, an ELTIF is not an ETF. An ETF is traded daily on the stock exchange and usually tracks a liquid index. An ELTIF is geared toward the long term; redemptions are generally only possible at specific times, such as quarterly, and may be limited. Capital can be tied up for the duration of the term, and losses, including a total loss of capital, are possible.

What is an ELTIF in the context of an ETF search? A regulated fund structure that can be closer to private markets than a listed private equity ETF. For a full understanding, it is worth reading the Private Equity Guide, because the focus there is on the asset class itself.

Does a private equity ETF make sense?

Whether a private equity ETF makes sense depends on what you are looking for. If you want to buy liquid shares of companies active in the private equity space, a listed private equity ETF can be a straightforward solution. You get daily tradability, broad diversification within the segment, and a structure that is familiar to many investors.

If, on the other hand, you are looking for access to private companies, the term ETF leads in the wrong direction. In that case, it is more about private equity funds, funds of funds, ELTIFs, or evergreen funds. These avenues are more long-term, less liquid, and involve different risks, but they may be closer to what investors actually associate with private markets.

The bottom line: A private equity ETF can bring the stocks of the private equity industry into your portfolio. Real private equity begins where daily stock market tradability ends.

This is not investment advice. It is an overview to help you better understand which product matches which expectation.

How retail investors get access today

For a long time, private equity was reserved primarily for institutional investors: pension funds, foundations, and family offices. Today, regulated fund structures such as ELTIFs and evergreen funds are opening up access for retail investors as well, albeit with clear rules, longer terms, and limited liquidity.

This is exactly where NAO comes in as a private markets platform. Through NAO, you can invest in selected private markets funds starting from 1 euro, including via savings plans. In the private equity sector, NAO works with partners such as Partners Group and UBS. NAO does not make individual stocks tradable; access is provided via fund structures. For you, this means: If you are looking for private equity for retail investors, it is no longer just about theory. There are regulated paths, but they work differently than an ETF. You can find details on the available private equity solutions on the page Private Equity with UBS and Partners Group. The broader framework is provided by the Private Equity Guide.

Capital in such products is tied up for the long term or only available to a limited extent. Losses, up to and including a total loss, are possible. Therefore, fund documents and the KID should always be reviewed before you make a decision.

Conclusion

The ETF label sounds like easy access. With private equity, it is worth taking a second look: A listed private equity ETF tracks the publicly traded industry, while real private equity works with private companies, longer terms, and limited liquidity.

Therefore, the most important question for you is not whether a product is labeled as a private equity ETF. The deciding factor is what kind of exposure you are really looking for: equity-market-oriented investment companies or access to private companies via fund structures.

This is not investment advice, but a general overview. You can find the fund documents and the KID in the NAO app.

FAQ

Is there such a thing as a private equity ETF?

In the literal sense, there is no classic private equity ETF that invests directly in private companies. What does exist are listed private equity ETFs, which track publicly traded investment firms and companies within the private equity sector.

This is an important distinction. The ETF holds publicly traded stocks, whereas true private equity invests in non-publicly traded companies.

Can you invest in private equity via an ETF?

You can invest indirectly in the publicly traded private equity industry through an ETF. In this case, you are buying shares in a fund that bundles stocks of companies from this sector.

You do not gain direct stakes in private target companies this way. That requires different fund structures, such as traditional private equity funds, funds of funds, or ELTIFs.

What is the difference between a private equity ETF and an ELTIF?

A private equity ETF based on listed private equity is tradable on a daily basis and invests in the stocks of publicly traded companies in the private equity space. An ELTIF is a long-term, regulated fund structure that can provide access to private markets.

The difference between an ETF and an ELTIF is primarily seen in liquidity and investment objectives. ETFs are liquid and market-oriented, while ELTIFs are more long-term, with redemptions possible only at specific times and potentially subject to limitations.

What is listed private equity?

Listed private equity refers to publicly traded companies that are active in the private equity business. This can include investment holding companies, asset managers, or investment firms.

A listed private equity ETF bundles the stocks of such companies. By doing so, you are investing in the publicly traded side of the private equity industry, not directly in the private target companies held by the funds.

Does a private equity ETF make sense?

A private equity ETF can make sense if you are looking for liquid equity exposure to the private equity industry. In that case, the structure of a listed private equity ETF aligns with your expectations regarding tradability and portfolio management. If you are looking for genuine access to private companies, an ETF is usually not the right vehicle. In that case, it is worth looking at private equity funds, ELTIFs, or evergreen funds, each with their associated risks and liquidity rules.

Private equity ETF or fund: which is better?

Which is better depends on your goal. An ETF is more liquid and indirect, while a private equity fund is more long-term and closer to private companies.

Those who want daily tradability should look more at listed private equity. Those seeking access to private markets should consider fund structures. Both have opportunities and risks, and this overview does not replace professional investment advice.