What is the difference between the ELTIF and a Private Equity ETF?

The BlackRock Private Equity Fund (ELTIF) and a Private Equity ETF invest in different asset classes. While the ELTIF makes a native investment in Private Equity (as a so-called limited partner), Private Equity ETFs invest in listed management companies (general partners). More details can be found in the glossary article on Co-investments.

The BlackRock Private Equity Fund can therefore be used to invest in unlisted companies. The risk profile differs accordingly: While the ETF only invests in shares from a specific sector (financial services), the ELTIF is generally more broadly diversified across different regions and sectors.

This can be illustrated, for example, with real estate versus exchange-traded real estate companies (REITs) and gold versus gold mining stocks. Both are different asset classes with distinct risk/return profiles.