Quick Read
Billionaire investor Bill Ackman has built a reputation as one of Wall Street’s most successful stock pickers, generating exceptional long-term returns through a high-conviction, concentrated portfolio. While investors can now gain direct exposure to Ackman’s strategy through the Pershing Square USA (PSUS) closed-end fund, which came to market in April, similar exposure can be achieved through low-cost, diversified ETFs.
The Vanguard Mega Cap ETF (MGC) and Vanguard Growth ETF (VUG) each hold several of Ackman’s largest positions, including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta Platforms (META), and Uber (UBER). Although neither fund is designed to mirror Pershing Square’s portfolio, both provide diversified exposure to many of the same high-quality businesses that have become the cornerstone of Ackman’s investment strategy. Here is how they compare and which type of investor each fund may be best suited for.
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Why Not Just Buy Pershing Square USA?
Pershing Square USA gives investors direct access to Ackman’s highly concentrated stock-picking strategy without the high minimum investment requirement typically associated with hedge funds. That said, while the fund does not charge a performance fee, it does carry a 2% annual management fee. This is substantially higher than the cost of most broad-market ETFs.
Additionally, as a closed-end fund, PSUS can trade at either a premium or discount to its net asset value, adding another layer of consideration that investors do not face when buying traditional ETFs. Currently PSUS is trading at a discount of -21.79% to NAV.
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