Low-cost ETFs replicate Ackman portfolio cheaper than PSUS
Investors can bypass Bill Ackman’s 2% management fee on his new closed-end fund by using broad Vanguard ETFs that hold his top mega-cap positions.
Investors seeking exposure to Bill Ackman’s stock picks can bypass the 2% management fee of his new Pershing Square USA fund by utilizing low-cost Vanguard ETFs that hold nearly identical positions. The Vanguard Mega Cap ETF (MGC) mirrors seven of Ackman’s eight publicly traded positions at an expense ratio of just 0.07%. The Vanguard Growth ETF (VUG) captures his growth-oriented picks for an even lower 0.03%.
Since launching in April, Pershing Square USA (PSUS) has offered retail investors a gateway to Ackman's strategy without traditional hedge fund minimums. The fund does not charge a performance fee, but its 2% annual management fee substantially exceeds the cost of passive alternatives. Furthermore, PSUS currently trades at a 21.79% discount to its net asset value.
Both MGC and VUG provide diversified access to Ackman’s largest public stakes, including Microsoft, Amazon, Alphabet, Meta Platforms, and Uber. While these broad-market funds are not managed to track Pershing Square, their heavy weighting toward dominant large-cap technology and consumer platforms naturally overlaps with the core of Ackman’s portfolio.
This cost divergence highlights a structural consideration for retail investors choosing between active and passive vehicles. PSUS investors pay a premium for concentrated stock selection, but the closed-end fund structure introduces share price volatility tied to market sentiment. Traditional ETF investors avoid this NAV discount risk entirely.
The steep 22% discount on PSUS may attract arbitrageurs betting on a narrowing of that gap over time. For long-term investors focused purely on owning Ackman’s favored mega-cap stocks, however, passive ETFs offer a highly correlated and significantly cheaper alternative to the billionaire’s own fund.
