BKLN

📎 Investment Objective

The Invesco Senior Loan ETF (BKLN) seeks to track the investment results of the S&P/LSTA U.S. Leveraged Loan 100 Index, which is designed to track the performance of the largest facilities in the leveraged loan market.

✨ Key Features

• Provides exposure to the senior loan market, which can offer higher yields than traditional fixed-income investments
• Utilizes a passive, index-tracking strategy to minimize costs
• Invests in the largest and most liquid senior loans in the market
• Offers potential protection against rising interest rates due to the floating-rate nature of senior loans

⚠️ Primary Risks

• Credit risk: The fund is exposed to the risk of default or downgrade of the underlying senior loans
• Interest rate risk: While senior loans offer some protection against rising rates, they are still subject to interest rate fluctuations
• Liquidity risk: The senior loan market can experience periods of reduced liquidity, which may impact the fund's ability to sell positions
• Concentration risk: The fund's focus on the senior loan market means it may be more volatile than a more diversified fixed-income fund

👤 Best For

The Invesco Senior Loan ETF may be suitable for investors seeking exposure to the senior loan market as a way to potentially generate higher yields and protect against rising interest rates. However, investors should be comfortable with the credit and liquidity risks associated with this asset class.