JPMorgan Proposes ETF with up to 15% Private Credit Allocation

JPMorgan Chase is filing plans to offer an actively managed exchange-traded fund (ETF) that will invest in both public and private debt markets, with up to 15% of its portfolio allocated to private credit. The fund aims to generate total returns and income. The move comes as the private credit industry seeks new sources of capital, with firms increasingly targeting retail investors.

JPMorgan Chase is expanding its ETF offerings by filing plans for an actively managed exchange-traded fund (ETF) that will invest in both public and private debt markets. The proposed fund, Total Credit ETF, aims to generate total returns and income, with up to 15% of its portfolio allocated to private credit Move Over State Street. JPMorgan Becomes Latest to File for Private Credit ETF^[1].

The move comes as the private credit industry seeks new sources of capital, with firms increasingly targeting retail investors. JPMorgan Asset Management, the firm behind the proposed ETF, believes that the private credit market can add yield and diversification benefits to portfolios. Jed Laskowitz, global head of private markets and customized solutions for JPMorgan Asset Management, stated, "The US corporate credit market is increasingly converging, as issuers move fluidly between public bonds and private credit" Move Over State Street. JPMorgan Becomes Latest to File for Private Credit ETF^[1].

The ETF will use JPMorgan Asset Management to underwrite primary or secondary market investments, according to Bloomberg. While the filing did not include fees, similar ETFs charge around 0.7% to 0.59% in expenses Move Over State Street. JPMorgan Becomes Latest to File for Private Credit ETF^[1]. The private credit ETF market is still in its early stages, with only a few ETFs representing a small portion of the market Move Over State Street. JPMorgan Becomes Latest to File for Private Credit ETF^[1].

In addition to JPMorgan, other major asset managers such as State Street, Capital Group, and KKR are also launching private credit ETFs. This trend reflects the growing interest in private credit investments among retail investors Move Over State Street. JPMorgan Becomes Latest to File for Private Credit ETF^[1].

Eldridge, an asset management and insurance holding company, has also expanded its ETF offerings with the launch of the Eldridge AAA CLO UCITS ETF (TAAA). This actively managed fixed income ETF provides access to high-quality U.S. dollar-denominated AAA-rated CLO bonds, offering potential consistent income and capital preservation Eldridge Expands Actively Managed CLO ETF Suite with Launch of UCITS ETF^[2].

The Eldridge AAA CLO UCITS ETF is designed to attract sophisticated investors who are not U.S. taxpayers, giving them access to USD-denominated AAA CLO liabilities without U.S. withholding taxes. The ETF is actively managed by Eldridge's team of CLO investment specialists and has a total expense ratio of 0.35% Eldridge Expands Actively Managed CLO ETF Suite with Launch of UCITS ETF^[2].

The proposed JPMorgan ETF and the Eldridge AAA CLO UCITS ETF are part of a broader trend in the financial industry, where asset managers are increasingly offering actively managed ETFs that target specific market segments, including private credit.