Bank Loan ETFs: More Competition in Red-Hot Sector

April 28th, 2013 at 6:47am by Tom Lydon

The First Trust actively managed ETF will also be going up against two passive senior bank loan ETFs: PowerShares Senior Loan Portfolio (NYSEArca: BKLN), which tracks the S&P/LSTA U.S. Leveraged Loan 100 Index; and the Highland/iBoxx Senior Loan ETF (NYSEArca: SNLN), which tracks the Markit iBoxx Liquid Leveraged Loan Index.

The PowerShares BKLN has a 0.66% expense ratio and a 3.90% 30-day SEC yield. BKLN is the largest ETF in this category and has witnessed assets more than double since the start of the year, gaining over $2 billion in new inflows. The Highland SNLN has a 0.55% expense ratio and a 5.15% 30-day SEC yield.

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Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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