US regulators, in unusual move, raise concerns about new private credit ETF

The U.S. Securities and Exchange Commission (SEC), which is like a financial police force, had some questions about a new type of investment fund called an ETF. This ETF invests in private loans and bonds, which are like IOUs from companies. The SEC worried about whether the fund could easily be sold (liquidity) and if the name was fair.

• The SEC asked the company running the ETF to answer some important questions.
• The SEC was concerned about how much of the fund was invested in hard-to-sell things.
• This is unusual because these questions are usually solved before the fund starts selling.