BlackRock Touts ETFs as Liquidity Antidote to Private Exposure

Exchange-traded funds can be the source of liquidity that retail investors need after ramping up exposure to private assets, BlackRock Inc. executives wrote in a report.

The lack of daily liquidity in private funds, which typically only allow redemptions at specific intervals, as well as their slow repricing boosts the need for something that can be quickly bought or sold during challenging times, the report argues. With private credit allocations growing among wealthy clients, bond ETFs can be a “liquid ballast,” they said.