Rieger Report Rankings: Senior Loan ETFs December 2018

There are four prominent senior loan ETFs with assets totaling over $9.6 billion in AUM. 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. This actively managed ETF has outperformed in 2018 v. other three ETFs.
  • Highland iBoxx Senior Loan (SNLN): Rationale: performance similar to other ETFs but at lower management fees. One negative is the comparative lower ETF liquidity to SRLN.
  • Invesco Senior Loan Portfolio (BKLN) – Rationale: improved ranking from #4 to #3 due to relative high liquidity, performance on parity with other ETFs and lower fee than FTSL.
  • First Trust Senior Loan (FTSL) (Active) – Rationale: ranking falls to #4 as management fees are higher and yields lower relative to the top performers. This actively managed ETF has underperformed v. the other three ETFs.

Senior Loan (Bank Loan) ETFs (Over $500 million in Assets)

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Sources: Highland Funds, Invesco, State Street, First Trust and Yahoo Finance.   Table is shown for illustrative purposes only. Past performance is not indicative of future results. Data as of 12/26/2018 with exceptions being 19/30/2018 and 211/30/2018.

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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