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)
Sources: Highland Funds, Invesco,State Street, First Trustand 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.
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.
Past performance of any investment product or index referenced in the Rieger Report is not an indication of or guarantee of future results.
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