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.
Past performance of any investment product or index referenced in the Rieger Report is not an indication of or guarantee of future results.
The Rieger Report LLC is not an investment advisor, and the Rieger Report LLC makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other investment product or vehicle. A financial advisor should be contacted to determine what may be best for your individual needs. The Rieger Report LLC is not a financial or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. No legal relationship is created between you and Rieger Report LLC.
The Rieger Report LLC does not act as a fiduciary or investment advisor. While the Rieger Report LLC has obtained information from sources it believes to be reliable, the Rieger Report LLC does not perform any audit or undertake verification of any information it receives.
The Rieger Report Rankings are opinions of relative ranking among the peer group analyzed as of the date expressed and not statements of facts. Rieger Report model portfolios are intended for illustration only. Any opinion or analysis decisions are not to be construed as recommendations to purchase, hold or sell any securities or to make any investment decisions, and do not address the suitability of any security. The Rieger Report LLC does not assume any obligation to update the content in this publication in any form or format.
Your use of any information from this document or presentation is at your own risk and without recourse against Rieger Report LLC, its members, managers, or employees. To the maximum extent permitted by law, Rieger Report LLC disclaims any and all liability in the event any information, commentary, analysis, and/or opinions prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.