Strategas ETF strategist Todd Sohn emphasized that transparency and liquidity are vital for investor interest in exchange-traded funds with private-market exposure. He spoke on Bloomberg's "ETF IQ" with Katie Greifeld and Scarlet Fu. Sohn noted that while strong performance can quickly attract attention, unclear valuations and a lack of liquidity could cause problems for these ETFs.

This discussion comes as the ETF market continues to evolve, with increasing interest in accessing alternative assets. Many investors are looking for diversification beyond traditional stocks and bonds. However, private markets, by their nature, are less transparent and liquid than public markets. This creates a challenge for ETF providers.

The core issue is the potential for valuation disputes and the difficulty of quickly selling assets if needed. Without clear pricing and easy trading, ETFs can lose their appeal. Investors need to be confident they can buy and sell shares at a fair price.

Moving forward, watch for how ETF providers will address these concerns. They may need to offer more frequent disclosures and improve their pricing mechanisms. The success of private market ETFs hinges on building trust through clear communication and robust trading capabilities.