Senior Loan (Bank Loan) ETFs, 3/12/2019
There are four prominent senior loan ETFs with assets totaling over $9.9billion 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 the other three ETFs based on ETF share volume. Consistent performance is a plus.
Invesco Senior Loan Portfolio (BKLN) – Rationale: ranking remains at #3 due to relative high liquidity and lower fee than FTSL. However, performance is below the other three ETFs so far in 2019.
First Trust Senior Loan (FTSL) (Active) – Rationale: ranking remains at #4 as management fees are higher and performance while good this year so far has been inconsistent.
Senior Loan (Bank Loan) ETFs
(ETFs with Over $500 million in Assets)
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 3/11/2019 with exception being 19/30/2018 and 22/28/2019.
Analyst Disclosure (3/12/2019):
- JR Rieger 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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