Two private credit collateralized loan obligation ETFs — each claiming to be the first of its kind to market — were launched Dec. 3, according to separate announcements from BondBloxx Investment Management and Virtus Investment Partners.
BondBloxx, a provider of fixed-income ETFs, said in a Dec. 2 news release that the BondBloxx Private Credit CLO ETF, which it described as “the first ETF that offers investors direct exposure to private credit” would launch Dec. 3.
The Virtus Seix AAA Private Credit CLO ETF is “the first ETF to focus on private credit collateralized loan obligations,” Virtus said in a Dec. 3 news release introducing its new ETF.
“The ETF industry has been a force of continuous innovation for investors, and I am proud that BondBloxx is a leader in that innovation in fixed income,” said Leland Clemons, BondBloxx founder and CEO, in its news release. “We’re thrilled to bring private credit to ETFs, and we look forward to redefining what is possible in fixed-income ETFs.”
Macquarie Asset Management, a global asset manager that had about $633.7 billion in assets under management as of Sept. 30, acts as subadviser for the BondBloxx ETF, known by the ticker symbol PCMM, according to the news release.
As of Dec. 3, BondBloxx has $3.4 billion in total assets under management across 25 ETFs, a BondBloxx spokeswoman said.
The Virtus Seix AAA Private Credit CLO ETF “primarily seeks to invest in the strongest and most undervalued AAA-rated private credit CLOs and provides active management in a transparent, liquid and cost-effective ETF,” the Virtus news release said.
The fund, known by the ticker symbol PCLO, is the second ETF managed by Seix Investment Advisors, an affiliated manager of Virtus Investment Partners, the news release said.
“We believe ETFs will become essential tools for investors seeking to access the burgeoning private credit market as it evolves,” said William J. Smalley, executive managing director, Virtus ETF Solutions.
Virtus ETF Solutions, an affiliate of Virtus Investment Partners, offers 20 ETFs — including actively managed and index-based ETFs, a Virtus spokesman said. Virtus ETF Solutions had $2.6 billion in assets under management as of Sept. 30, according to the Virtus release.
Virtus Investment Partners, a partnership of boutique investment managers — all of which Virtus owns — had a total of $183.7 billion in assets under management as of Sept. 30, the spokesman said.
