Simplify Asset Management launched the Simplify VettaFi Private Credit Strategy ETF (NYSE: PCR), tapping into one of the most talked-about themes in 2025: private credit.
The fund, which carries a net expense ratio of 0.76%, aims to provide investors with a blend of income and capital appreciation while mitigating some of the risks typically associated with the asset class.
PCR is at important technical levels. See the trading setup here.
PCR tracks the VettaFi Private Credit Index (VPCIX), which gains exposure through Business Development Companies (BDCs) and Closed-End Funds (CEFs) that focus on private credit. According to Simplify Managing Director and Portfolio Manager Chris Getter, the strategy fills a gap for retail investors and advisors.
Unlocking Opportunities In Private Credit Investments
“Products targeting retail and advisor demand for private credit have become quite popular,” said Getter. “The opportunity we saw was to utilize some of the expertise we have successfully deployed in other Simplify funds to deliver investors the benefits of private credit — higher credit quality, higher yields, shorter duration — while providing some cushion to guard against the periodic drawdowns the asset class has been subject to in times of acute market stress.”
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One challenge for ETF issuers has been packaging private credit into a liquid, tradable format. Getter credits VettaFi’s innovative index design for overcoming that hurdle. The index screens for liquidity when selecting BDCs and CEFs and incorporates trading volume in its weighting methodology. This structure, Getter noted, gives PCR “a more robust exposure to private credit which still delivers the advantages of an ETF structure.”
PCR also layers in a proprietary hedging strategy designed to smooth returns. Getter said that it builds on Simplify’s experience with its High Yield ETF (CDX): “…the basic objective is twofold. First, there is the direct benefit of providing some cushion to return in the case of market pullbacks, which can be significant in private credit. Second, having a smoother return profile allows investors to avoid having to market-time their entry and exit points.”
How Simplify’s ETF Redefines Accessibility
While some may flag PCR’s 76 bps fee as high for an ETF, Getter counters that the fund is competitively priced within the private credit category, particularly because its use of Total Return Swaps helps avoid acquired fund fees and expenses.
The launch comes at a time when investors are increasingly seeking alternatives to traditional equity and fixed income. Getter sees this shift as more than a passing fad.
“Some of that broadening is demand-driven. For example, investors looking for new sources of return, especially when traditional assets might be considered overvalued,” Getter said. “Or perhaps seeking diversification, especially with the rising correlation between stocks and bonds. And some of it is probably supply-driven. As an industry, we are making traditionally hard-to-access assets more accessible. PCR is a great example of that. But either way, I tend to think that the trend is structural in nature.”
PCR primarily targets advisors and retail investors who have historically lacked efficient access to private credit. However, Getter noted that institutions could also use the fund as a “capital-efficient placeholder” while awaiting calls on committed capital.
The Growing Demand For Alternative Assets
As for the broader advisor mood in 2025, Getter said the conversation has evolved.
“In the past year, we have passed a tipping point. The discussion has moved from a binary one — alts yes or alts no — to a sizing one: alternatives deserve an allocation and probably an increasingly large one in client portfolios.”
With more than 30 ETFs and over $10 billion in assets under management, Simplify is betting PCR will add another strong arrow to its alternatives quiver, giving investors a systematic, hedged and liquid path into the fast-growing world of private credit.
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