Core Insights - State Street has successfully launched private credit ETFs, with the SPDR SSGA IG Public & Private Credit ETF (PRIV) outperforming its benchmark despite modest asset flows of approximately $96 million [2][3] - The second product, State Street Short Duration IG Public & Private Credit ETF (PRSD), debuted in September and has reached $90 million in assets [2] - Both ETFs are diversified bond funds, with a current allocation of about 20% to Apollo-sourced private credit investments, while maintaining liquidity constraints that limit illiquid investments to 15% of the portfolio [3][4] Industry Trends - The demand for private credit exposure is increasing, with asset managers actively launching new products, such as JPMorgan's Total Credit ETF, which will allocate up to 15% to private credit [4] - Capital Group and KKR have partnered to create two public and private debt interval funds, which have collectively raised over $500 million [4] - WisdomTree has introduced a tokenized mutual fund focused on private credit and alternative income [4]

Core Insights - J.P. Morgan Asset Management has filed for approval of its Total Credit ETF, which will allocate up to 15% of assets to private credit, indicating a growing interest in private credit investments [1][4] - The convergence of the US corporate credit market is noted, with issuers moving fluidly between public bonds and private credit, highlighting the diversification benefits and yield potential of private credit [2][4] - The private credit market has seen significant growth, with semiliquid funds sold to nonqualified buyers reaching $450 billion in assets, a 77% increase from 2022 [4] Company Developments - J.P. Morgan's Total Credit ETF aims to underwrite investments in primary or secondary markets, although specific fees for the ETF have not been disclosed [4] - Other major asset managers, including Capital Group and KKR, have launched private-credit interval funds that have collectively reached nearly $500 million [6] - Vanguard, Wellington, and Blackstone are also preparing to launch a private credit fund called the WVB All Markets Fund [6] Market Trends - The interest in private credit ETFs is still developing, with retail investors not yet heavily investing in this category [5] - High yields from private credit funds make them attractive for a small portion of investor portfolios, with aggressive portfolios currently holding between 5% to 10% in private credit [3]