Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Private Credit Growth Could Boost Interest in This ETF

BY | ETF Database
02/03/2025 | 576 VIEWS
With significant contributions from advisors and alternative-enthused clients and investors, demand for private credit investments is soaring. Many expect that theme to continue this year.Fortunately, access to private credit — previously one of the long-standing hurdles — is increasing. Exchange traded funds are a big reason why. The WisdomTree Alternative Income Fund (HYIN ), which turns four years old in May, is among the options advisors and investors have for accessing alternative credit via the ETF wrapper. HYIN sports a 30-day SEC yield of 11% and that’s eye-catching in its own right. But there are other reasons to believe the ETF could increasingly appear on asset allocators’ radars this year. “The size and scope of the global private credit markets will continue to grow rapidly this [year. They will be] spurred by lower interest rates, declining default risk and solid economic strength, led by the US and Europe. Global private credit [AUM] will jump to $3 trillion by [2028. That reflects] greater momentum than in the past two years,” noted Moody’s Investors Service.HYIN Has TailwindsOver the course of this year, it’s possible that multiple tailwinds will emerge for the private credit market. That includes the Trump administration potentially taking a more sanguine view of regulations regarding the asset class. That could compel advisors and retail investors to consider HYIN. “The US regulatory approach toward the US private credit market will likely change during the second Trump [administration. That is because priorities shifting] from an emphasis on enhanced disclosure requirements to reassessing the existing regulatory framework with a focus on capital formation,” added Moody’s. The high yields offered by private credit are a clear selling point. But there’s more to the story.Additional Potential Private Credit Catalyst“Retail private debt AUM has been [accelerating. That’s] still less than 20% of total private debt [AUM. But it’s] growing more quickly than institutional AUM,” observed Moody’s. “To access this newer [base, some managers] are coming to market with evergreen [funds. Others are] rolling out first-ever private credit Exchange Traded Funds.” Another potential catalyst for private credit in 2025 and going forward is broadening adoption of the asset class among professional market participants. Those include banks and insurance companies. The latter typically invest for the long term and need to source significant amounts of income. “Synergies between insurance companies and alternative managers will [grow. But] it will be essential to monitor risks, especially credit and asset-liability mismatch (ALM) risks,” concluded Moody’s. For more news, information, and analysis, visit the Modern Alpha Channel. This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.  WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

More Commentary

Top Active ETF TCAF Adds More Than Half a Billion in 1 Month
BY | ETF Database
04/02/2025 | 43 VIEWS
Sell on the Pop Prospects: April 2 Edition
BY | ETF Database
04/02/2025 | 5 VIEWS
Gold's Rally Continues to Tee Up Opportunities for Miners
BY | ETF Database
04/02/2025 | 44 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.