BKLN is a “decent yield play” that’s easy to trade and very liquid, said Chris Hempstead, director of ETF execution services at WallachBeth Capital, in a phone interview. The ETF’s expense ratio is “reasonable” considering how much it would cost for individual investors to trade these type of loans, he added.

On the other hand, if an investor is interested in the floating rate aspect as protection against rising rates but wary about speculative grade debt, there are investment grade floating rate ETFs, such as the iShares Floating Rate Note Fund (NYSEArca: FLOT), SPDR Barclays Capital Investment Grade Floating Rate (NYSEArca: FLRN) and Market Vectors Investment Grade Floating Rate (NYSEArca: FLTR).

PowerShares Senior Loan Portfolio

For more information on bonds, visit our bond ETFs category.

Max Chen contributed to this article.