State Street Investment Management has announced the launch of the State Street IG Public & Private ABS ETF (PRAB), an actively managed exchange-traded fund designed to expand investor access to a fast-growing, higher-quality segment of global credit markets.
PRAB primarily invests in investment grade asset-backed securities (ABS), both listed and private, including collateralized loan obligations (CLOs), as well as residential and commercial mortgage-backed securities. The fund’s innovative exposure to both listed and private ABS responds to growing investor demand for income-oriented strategies with higher ratings. The fund’s allocation to private ABS may include, among others, securities provided by Apollo Global Securities, LLC.
By investing across a broad range of investment grade ABS — including ABS sectors that have historically had limited or no representation in the Bloomberg US Aggregate Bond Index — PRAB can serve as an effective complement to core bond allocations and help diversify sources of income within a bond portfolio.
“Although the global asset-backed financing market exceeds $20 trillion, ABS have long been underrepresented in investor portfolios,” said Anna Paglia, Chief Business Officer at State Street Investment Management. “With PRAB, we are expanding investor access to a higher-quality yet still largely untapped segment of the global credit market, which offers diverse sources of potential income and the possibility of higher returns compared to corporate bonds with a similar risk profile,” she concluded.
Managed by State Street Investment Management’s active fixed income team, the PRAB ETF adopts a risk-aware top-down approach combined with bottom-up security selection designed to overweight the most attractive sectors and issuers.
PRAB adds to State Street Investment Management’s growing range of innovative public and private credit solutions, following the launches of the State Street® IG Public & Private Credit ETF (PRIV) and the State Street® Short Duration IG Public & Private Credit ETF (PRSD) in 2025. The range had attracted approximately $980 million in assets as of the end of February 2026.
