From CNBC: 2025-03-30 09:51:00

Wall Street investment strategies are becoming more accessible to Main Street investors, with JPMorgan Chase and BlackRock leading the way in offering private strategies through ETFs. Private credit and equity income strategies are seeing increased adoption among investors seeking alternative investments.

BlackRock, the largest asset manager, acquired Preqin to expand into private investments and plans to increase indexing of private investments. The SEC recently approved the first private credit ETF, addressing the challenge of liquidity in private markets. ETFs like Van Eck’s BDC Income ETF are providing access to traditionally illiquid assets.

Active ETFs offering downside protection and income from selling call options are gaining popularity amid stock market volatility. Funds like JPMorgan’s JEPI and JEPQ are designed to provide consistent income for investors. Goldman Sachs Asset Management is also offering similar strategies to meet the demand for income across asset classes.

Investors can now access options fund strategies through ETFs, making it easier and more cost-effective than traditional Wall Street private banking. Buffer ETFs, which cap market upside and downside to mitigate volatility, are also seeing increased demand. These strategies offer a way for investors to stay in the market with less fear of losing money quickly.

As the S&P 500 faced significant declines, ETF strategies offering protection are attracting attention from advisors and clients. Private credit ETFs, while less liquid than interval funds, provide a more affordable option for accessing traditionally illiquid investments. Investors should consider the pros and cons of wrapping these strategies in an ETF structure.

Despite initial skepticism, private credit ETFs may become standard in the future, similar to the acceptance of bank loans in ETF format. The industry is evolving to meet the demand for alternative investments, offering investors more options to diversify their portfolios.

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