The race to bring private assets into the retail market is set for a significant boost, with a highly anticipated exchange-traded fund (ETF) from State Street Corp. and Apollo Global Management Inc. poised for launch. The SPDR SSGA Apollo IG Public & Private Credit ETF, identified by its ticker PRIV, is nearing its official debut following an updated regulatory filing and new information posted on the New York Stock Exchange’s website.
According to the SEC filing, the fund will allocate between 10% and 35% of its portfolio to private credit, with illiquid investments capped at 15%, in compliance with regulatory guidelines. The actively managed ETF will feature a 0.70% expense ratio.
Apollo’s push to make the traditionally illiquid market of private investment-grade debt more accessible has been gaining traction. The collaboration with State Street is seen as a strategic step in opening up private credit markets, potentially paving the way for further innovation in the ETF sector.
The filing, dated February 26, details that the private-credit investments will encompass a broad spectrum of credit instruments, including those directly originated or issued in private offerings. Apollo will also offer intra-day, firm executable bids on investments sourced by the firm.
“This is a ground-breaking ETF launch, both in the volume of private assets involved and the collaboration with Apollo,” said Eric Balchunas of Bloomberg Intelligence. “The ETF industry is relentlessly pushing boundaries, and this launch represents a major leap into the private sector—expect more innovations to follow.”
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