Invesco PowerShares has filed to unleash a new exchange traded fund (ETF) that provides investors access to a portfolio of senior secured bank or floating rate loans.

The ETF is to officially hit the scene on March 3, 2011, and is expected to issue monthly dividends.

The PowerShares Senior Loan Portfolio (NYSEArca: BKLN) is the ETF industry’s first senior loan fund. BKLN provides a compelling new means to access this asset class through the benefit-rich ETF structure, through shorter maturities and a floating interest rate feature that typically resets quarterly.

Senior secured loans have the ability to keep pace with rate changes and have historically proven to be more stable than traditional high yield fixed-income investments.

Tisha Guerrero 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.