JPMorgan Files Plans to Put Private Credit Into an ETF Wrapper

Core Viewpoint - JPMorgan Chase & Co. is launching an actively managed ETF that will invest in both private and public debt, aiming to attract retail investors to the growing private credit market [2][3]. Group 1: ETF Details - The proposed JPMorgan Total Credit ETF will allocate up to 15% of its portfolio to private credit, adhering to SEC regulations that limit illiquid investments in ETFs [2]. - The ETF aims to generate total returns and income by opportunistically investing across various debt markets [2]. Group 2: Market Context - The private credit industry, valued at $1.7 trillion, is increasingly targeting retail investors as institutional fundraising slows down [3]. - The convergence of the US corporate credit market is noted, with issuers moving fluidly between public bonds and private credit, reflecting growing investor interest in this spectrum [4]. Group 3: JPMorgan's Position - JPMorgan Asset Management manages nearly $200 billion in private securities within its total assets of $4 trillion, indicating a strong position in the market [5]. - The firm will underwrite the ETF's investments in both primary and secondary markets, although specific details like ticker and fees are not yet available [5]. Group 4: Industry Trends - The ETF industry has experienced mixed results, with some funds like State Street Corp.'s SPDR SSGA IG Public & Private Credit ETF facing muted demand since their launch [6].