Senior Loan (Bank Loan) ETFs

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)

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  1. 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.

Analyst Disclosure

  • 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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