From CNBC: 2025-03-08 11:00:01

The exchange-traded fund industry is expanding access to alternative investments, including private credit, for retail investors. BondBloxx launched the Private Credit CLO ETF, up 1% since December. While the S&P 500 and Nasdaq saw their worst weekly performances, this ETF remained flat. Critics believe alternative investment ETFs will gain acceptance over time.

Joanna Gallegos, former head of global ETF strategy at J.P. Morgan Asset Management, supports the expansion of alternative investments through ETFs like the Private Credit CLO. She believes that criticism of high-yield ETFs will diminish, as seen with past skepticism that faded with increased market participation. Todd Sohn of Strategas Securities argues that most retail investors do not need alternative investments, as a diversified portfolio of low-cost ETFs is sufficient.

Read more: Expanding access to private credit