There are four major senior loan ETFs with assets totaling over $13.5 billion. Two are passive and two are actively managed.
The Rieger Report ranks them as follows:
- SPDR Blackstone GSO Senior Loan ETF (SRLN) (Active) – Rationale: incrementally higher yield, relative ETF liquidity and lower tracking error
- Highland iBoxx Senior Loan (SNLN): Rationale: Strong performance in rising rate environment, lower management fees. One negative is the comparative lower ETF liquidity to SRLN
- First Trust Senior Loan (FTSL) (Active) – Rationale: Management fees are higher and yields lower relative to the top performers. This actively managed ETF has outperformed the largest Senior Loan ETF symbol BKLN
- Invesco Senior Loan Portfolio (BKLN) – Rationale: relative high liquidity is a plus that is outweighed by sluggish market performance and lower yield relative to the other three ETFs. Falling assets under management is worrisome
Author’s note: Evidence for or against active or passive investing in over the counter and less liquid asset classes can be highlighted here. Time will tell!
Senior Loan (Bank Loan) ETFs (Over $500 million in Assets)
- Assets Under Management. Data as of 10/5/2018 or as otherwise stated.
Sources: Highland Funds www.highlandfunds.com, Invesco www.invesco.com, State Street www.us.sdrs.com, First Trust www.ftportfolios.com and Yahoo Finance. Table is shown for illustrative purposes only. Past performance is not indicative of future results.
- JR Rieger and or the Rieger Report LLC has not received compensation either directly or indirectly from the sponsor(s) of the ETF(s) included in this report.
- At the time of this writing, JR Rieger does not own the ETF(s) cited in this report.
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