From Yahoo Finance: 2025-05-27 12:50:00

State Street, a leading asset manager, has filed to launch a second exchange-traded fund that will offer investors a mix of private and public investments in one vehicle. The SPDR SSGA Short Duration IG Public & Private Credit ETF plans to invest at least 80% in investment-grade debt securities and up to 35% in private credit.

This new ETF from State Street and Apollo Global will allocate funds to a wide range of private credit instruments, including non-bank lenders and private company offerings. The ETF stands out for its short-duration profile, which appeals to investors seeking faster returns, especially in riskier markets. The product may invest up to 20% in high-yield securities.

State Street’s new ETF may also use derivative instruments like futures contracts and swaps to manage currency exposure and yield. Details on fees and ticker for the fund were not disclosed due to regulatory reasons. The launch of this second public-private ETF follows the debut of PRIV in February, which has seen limited assets flow in.

Experts are questioning investor demand for State Street’s public-private ETFs, with PRIV only attracting $55 million in assets since its launch. Concerns about offloading junk assets, liquidity, and alignment of interests between asset managers and clients have been raised. Financial advisors are unsure if private assets truly benefit client portfolios.



Read more at Yahoo Finance: State Street, Apollo to Launch 2nd Public-Private ETF