Invesco Global Listed Private Equity ETF (PSP) Covered Calls

The Invesco Global Listed Private Equity ETF (PSP) provides investors with access to the private equity asset class by investing in publicly listed companies that own, manage, or provide services to private enterprises. The fund tracks the Red Rocks Global Listed Private Equity Index, offering a liquid alternative to traditional, illiquid private equity investments.

You can sell covered calls on Invesco Global Listed Private Equity ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PSP (prices last updated Mon 11:45 AM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Core Business and Products

The Invesco Global Listed Private Equity ETF (PSP) is a specialized vehicle designed to democratize access to the private equity (PE) sector. Historically, private equity has been reserved for institutional investors due to high capital requirements and multi-year lock-up periods. PSP’s "product" is a diversified, exchange-traded portfolio of 60 to 75 listed private equity companies, including business development companies (BDCs), master limited partnerships (MLPs), and other publicly traded entities that invest in or lend capital to privately held firms.

As of 2026, the fund is global in scope but has a significant tilt toward European and North American firms. Its holdings are dominated by the "titans" of asset management and private capital, including Partners Group Holding, 3i Group, Blackstone Inc. (BX), KKR & Co. (KKR), and EQT AB. By holding these firms, PSP captures the management fees, performance fees (carried interest), and direct investment gains generated by the world’s largest private equity portfolios. The fund is heavily concentrated in the Financials sector (approx. 90%), reflecting the nature of its underlying constituents as capital providers and asset managers.

Competitive Landscape

PSP is one of the oldest and most established funds in the listed private equity space, but it faces competition from a few key rivals in 2026:

1. ProShares Global Listed Private Equity ETF (PEX): A direct rival that tracks a different index (LPX Direct). PEX is generally less diversified than PSP and carries a significantly higher total expense ratio, often exceeding 2.80% due to acquired fund fees.

2. VanEck BDC Income ETF (BIZD): While focused specifically on Business Development Companies rather than broad private equity, BIZD competes for investors seeking the high-yield, private-credit component found within PSP.

3. Ares Capital (ARCC) or Blackstone (BX): Many investors choose to bypass the ETF and buy individual "Pure Play" leaders. These individual stocks offer higher liquidity and no management fee but lack the broad sector diversification of PSP.

4. Financial Select Sector SPDR Fund (XLF): Though much broader, XLV holds many of the same mega-cap asset managers, providing a lower-cost way to get incidental exposure to private equity growth.

Strategic Outlook and Innovation

The strategic value of PSP in 2026 lies in its role as a yield and growth hybrid. Because many of its underlying holdings (like BDCs) are required to distribute a high percentage of their earnings, PSP often boasts a trailing dividend yield between 6% and 9%. In 2026, the fund has benefited from the "private-wealth" boom, as firms like Blackstone and KKR successfully launched products targeting retail investors, significantly growing their Assets Under Management (AUM) and fee base. However, investors must remain wary of the fund's high **Total Expense Ratio (approx. 1.80%)**, which includes the management fees of the underlying private equity vehicles.

For options traders, PSP is technically optionable, but liquidity is extremely poor. While an options chain exists for the fund, the daily trading volume is often too low to support tight spreads or significant open interest. Traders looking to implement covered call strategies in the private equity space are much better served by writing calls on the individual highly liquid components of the fund, such as Blackstone (BX) or KKR, rather than the ETF itself.

Want more examples? PSO Covered Calls | PSQ Covered Calls