Bank Loan ETFs

For example, of the 50 ETFs launched in the first five months of this year, SPDR Blackstone/GSO Senior Loan (SRLN) gathered the largest flows, according to the fund’s sponsor, State Street Global Advisors.

“Sometimes an active strategy comes along that makes perfect sense,” writes Paul Baiocchi at IndexUniverse in a profile of SRLN.

“In anticipation of rising interest rates, investors rushed to invest in assets with low duration, and SRLN gathered 18% of all inflows into new U.S. ETFs,” according to State Street. “The fund offers access to senior secured bank loans—an asset class comprised of loans issued by below-investment-grade companies with rates that generally reset every three months. SRLN is specifically designed for investors searching for competitive yields, but concerned about duration risk.”

On Thursday, ETF Trends will host a webcast on SRLN, featuring ETF Trends Editor and Publisher Tom Lydon, David Mazza from State Street, and Lee Shaiman from BlackStone Group.

Financial advisors can register here. Accepted for 1 CFP and CIMA CE Credit.