Private-Credit ETFs Promise Access to Rarefied Markets. The Pros and Cons.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2024
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Source: Barron's
Comparison of ETFs and Private Assets: Exchange-traded funds (ETFs) are characterized by their low cost, transparency, and liquidity, while private assets are often opaque and illiquid but may offer higher returns. Recent launches of actively managed private-credit ETFs aim to provide small investors access to previously inaccessible markets.
Concerns Over New ETF Structures: The proposed ETF from State Street and Apollo raises concerns regarding transparency and liquidity, as it plans to directly own private credit with limited disclosures. Industry experts worry this could lead to self-dealing and liquidity mismatches, especially during market stress.
Analyst Views on PCLO
Wall Street analysts forecast PCLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PCLO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 24.925
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Current: 24.925
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
