On Tuesday, Simplify Asset Management unveiled the Simplify VettaFi Private Credit Strategy ETF (PCR).
PCR’s goal is to offer a distinct blend of income and capital appreciation. The fund has a net expense ratio of 76 basis points.
In order to execute on its investment objectives, PCR tracks the VettaFi Private Credit Index (VPCIX). This VettaFi index looks to gain private credit exposure by focusing on Business Development Companies (BDCs) and Closed-End Funds (CEFs) that mainly invest in private credit.
Advantages of Private Credit Exposure
The VettaFi index employs a rules-based approach to investing in BDCs and CEFs for private credit exposure. This includes rules based on market cap, trading volume, termination dates for CEFs, and more. All of this is done to cultivate an attractive profile in terms of both yield and volatility.
The lion’s share of PCR’s portfolio will usually be allocated to constituents of the VettaFi index. However, the fund does seek to stand out by allocating some of its net assets towards a proprietary hedging strategy.
This strategy focuses on investing in derivatives. The proprietary format looks to take long positions in high-quality assets while shorting lower-quality ones. By doing so, the fund’s management team hopes to create a well-balanced hedge against both credit and interest rate risk.
PCR is coming online at an opportune time, as many investors and advisors are seeking exposure to private credit. Furthermore, the fund’s added hedge could help PCR offer a more attractive risk profile compared to other peers on the market.
“Advisors have been seeking out alternative strategies in 2025 to diversify away from traditional fixed income and equities,” said Todd Rosenbluth, head of research at VettaFi. “The new Simplify ETF provides access to private credit in a unique manner through a systematic quality driven index based ETF.”
Simplify currently has more than 30 different ETFs listed in the United States. As a whole, these funds represent over $10 billion in assets under management.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for PCR, for which it receives an index licensing fee. However, PCR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of PCR.