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Navigating Private Credit: 4 Key Considerations for Advisors
['Elle Caruso Fitzgerald']
ETF Trends
Successfully investing in private credit involves four important considerations for advisors.
A key benefit for advisors is that this structure eliminates the reporting of acquired fund fees and expenses (AFFE), a common friction point in private credit for financial advisors.
In reality, PCR’s underlying index — the VettaFi Private Credit Index — has realized volatility over twice that of high-yield bonds.
Pursuit of Pure Private Credit ExposureMany competitors are constrained by the SEC’s 15% limit on illiquid holdings, leading to diluted private credit exposure.
Many private credit ETFs intend to offer private credit exposure via direct investment in unlisted securities.