Private-Credit ETFs: A New Frontier for Retirement Portfolios

Private-credit ETFs are emerging as a way to bring private loans into retail investment portfolios, including potential inclusion in retirement accounts, but they pose significant risks related to liquidity and valuation due to the illiquid nature of private assets. Industry leaders are exploring securitization through CLOs to improve tradability, yet concerns remain about the true liquidity and risk profile of these investments, especially during market stress. Regulatory and market developments are ongoing, with some pushing for broader private asset access in retirement plans, while skeptics warn of potential systemic risks.