Apollo Global Management is taking a big step into the world of exchange-traded funds (ETFs) by partnering with State Street Corp. on a new offering that’s catching plenty of attention. The fund, officially filed as the SPDR SSGA Apollo IG Public & Private Credit ETF, aims to bring something traditionally reserved for institutional players—private credit—into the hands of everyday investors.
The idea here is simple: combine the liquidity and accessibility of an ETF with the unique advantages of private credit investments, an asset class that’s grown dramatically over the past few years. Typically, private credit has been the domain of big players—insurance companies, sovereign wealth funds, and the like. But with this new ETF, Apollo is looking to change that by making private credit more accessible to individual investors.
So how does this fund plan to do it? The filing shows that the bulk of the ETF—at least 80%—will be invested in investment-grade securities, both public and private. The remaining slice, up to 20%, could be allocated to high-yield bonds, offering a bit more risk and, presumably, more reward. But the real twist here is Apollo’s strategy to bring in private credit. Apollo will actually source and originate private credit investments for the ETF, which is no small feat. The firm has also agreed to provide liquidity for these less liquid private assets, meaning investors will still be able to trade the ETF throughout the day, without worrying too much about getting locked into illiquid positions.
This blend of public and private credit is an important step toward making private assets more available to retail investors. Apollo CEO Marc Rowan has been clear about his vision of expanding private credit into retail portfolios, and this ETF is a move in that direction. Rowan’s thinking, which resonates with many in the market, is that investors are increasingly looking beyond traditional fixed income strategies—especially in a market where yields are still historically low and volatility can spike unexpectedly. Adding private credit could give portfolios a different kind of stability and return profile.
State Street’s involvement is worth noting, too. The firm is no stranger to innovation in the ETF world and has helped pioneer other shifts in the investment landscape. Now, alongside Apollo, State Street is positioning itself at the forefront of this trend toward ETF-izing private markets, a space that’s becoming more competitive as firms like BlackRock and Invesco also explore ways to integrate private assets into retail products.
But one of the big questions hanging over this kind of product has always been liquidity—how do you give investors daily liquidity in an ETF that includes private credit, which doesn’t trade as frequently as public assets? That’s where Apollo’s pledge to provide executable bids throughout the day becomes crucial. By taking on the responsibility of ensuring liquidity, Apollo is tackling one of the core challenges that’s limited private credit from being more widely available. This feature could be what sets this fund apart from other products in the market.
The private credit market, by Apollo’s definition, is a $40 trillion opportunity. That figure might sound staggering, but it encompasses a wide range of assets, from commercial real estate debt to corporate loans and even more niche areas like financing for railcars and aircraft. These aren’t the kinds of assets most retail investors have had access to in the past, but with this ETF, that could change. And it’s not just about access—there’s a growing belief that private credit can offer better returns and more stability than many public markets, especially during periods of heightened volatility.
For investors, this ETF offers the chance to dip into private credit without the usual barriers. Historically, private credit has been bundled into structures like business development companies (BDCs) or interval funds, which limit how often investors can withdraw their money. In contrast, an ETF offers far more liquidity, allowing investors to trade in and out throughout the day. This level of flexibility could make the Apollo-State Street ETF a popular choice for those looking to diversify their portfolios with private credit.
Ultimately, this launch is just one part of a larger movement in the market. The idea of bringing private credit—and private assets more broadly—into retail portfolios is gaining traction. And while this ETF may represent a cautious first step, it’s a meaningful one. It signals the direction the industry is heading, as more investors look to supplement their portfolios with alternative strategies that offer different risk-return dynamics. Apollo and State Street’s collaboration is just the latest example of how these once-exclusive assets are slowly becoming more accessible to a broader audience.