By Matt Wirz
State Street Global Advisors is rolling out its second private-credit ETF with Apollo Global Management, according to a filing with the Securities and Exchange Commission Tuesday.
The new fund is a short-duration version of the ETF the partners put out in September holding investments of one-to-three years duration compared with four-to-eight years in the original.
The Apollo/State Street partnership is part of a race among large fund managers like Blackstone, Vanguard and others to bring private investments to retail investors. Demand for the original fund has been negligible since at least February and it holds around $54 million of assets, according to Conor MacWilliams, an independent ETF consultant.
The new fund will hold roughly 80% investment-grade debt and 20% unrated or junk-rated investments. Between 10% and 35% can be invested in private credit, much of it originated by Apollo.
Apollo has contractually agreed to provide intra-day executable bids to buy back any private-credit instruments in the ETF that it originally supplied. The backstop is meant to ease share redemption and creation because private-credit trades infrequently.
(END) Dow Jones Newswires
May 27, 2025 14:23 ET (18:23 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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