Sink Into Senior Loans With This ETF

Related: An ETF of ETFs to Trim Interest Rate Risk

While BKLN and rival senior loan funds feature less interest rate sensitivity than traditional junk bond funds, senior loans are mostly high-yield debt. Nearly 70% of BKLN’s holdings are rated BB or B and 4% are rated CCC.

There is compensation for that risk via 30-day SEC yield of 4.26%, which is higher than an investment-grade corporate bond ETF but lower than a traditional junk bond fund.

For more information on the fixed-income assets, visit our bond ETFs category.