BKLN ISSUER
The Invesco Senior Loan ETF (BKLN) is managed by Invesco Capital Management LLC and aims to replicate the performance of the S&P/LSTA U.S. Leveraged Loan 100 Index. The fund primarily invests in senior secured loans, often issued by banks and lending institutions to corporations and entities across various industries and regions, including foreign countries. These loans are typically associated with recapitalizations, acquisitions, leveraged buyouts, and re-financings. BKLN follows a sampling methodology to achieve its investment objective, and as of October 31, 2022, the Underlying Index was comprised of 100 constituents. The fund does not concentrate its investments in any one industry unless reflected in the Underlying Index's concentration.
BKLN DIVIDEND
The Invesco Senior Loan ETF (BKLN) focuses on senior secured loans and offers a dividend component influenced by the interest payments and spreads of the loans within its portfolio. As these loans are often below investment-grade quality, investors should be aware that the dividend yield may reflect this risk. The fund employs a sampling methodology to achieve its investment objective and does not concentrate its investments in any one industry or group of industries beyond what is reflected in the Underlying Index.
BKLN TRACKING
At the heart of the Invesco Senior Loan ETF (BKLN) is the commitment to tracking the S&P/LSTA U.S. Leveraged Loan 100 Index. BKLN achieves this by investing in a diversified portfolio of senior secured floating-rate bank loans. With a focus on income generation and potential protection against interest rate fluctuations, BKLN provides investors with a unique tracking strategy that aligns with the dynamics of the leveraged loan market. This approach makes BKLN an appealing choice for those seeking a blend of income and a degree of resilience in the fixed-income space.
BKLN CORRELATION
The correlation aspect of the Invesco Senior Loan ETF (BKLN) is critical for investors seeking exposure to the leveraged loan market. BKLN primarily invests in senior secured loans, which are inherently tied to market interest rates and credit conditions. Its correlation with interest rate movements and credit risk factors is expected to be significant, making it a valuable tool for investors looking to manage their fixed-income portfolios in various economic environments.
BKLN SECTOR
The Invesco Senior Loan ETF (BKLN) primarily focuses on the leveraged loan sector. These loans are issued by banks and lending institutions to various borrowers, spanning across diverse industries and geographic regions. Leveraged loans typically support activities like recapitalizations, acquisitions, leveraged buyouts, and refinancings. BKLN invests in senior secured loans denominated in U.S. dollars, often with below investment-grade ratings or unrated but of comparable quality. As of October 31, 2022, the ETF tracked an index comprised of 100 constituents, reflecting its emphasis on the leveraged loan market. Please note that BKLN aims to achieve its investment objective through a sampling methodology, and it does not concentrate its investments in any single industry or group of industries beyond what the underlying index dictates.
BKLN EXPOSURE
The Invesco Senior Loan ETF focuses on providing exposure to the market of senior secured loans issued primarily by corporations, partnerships, or other entities, often in connection with recapitalizations, acquisitions, and leveraged buyouts. The fund aims to invest at least 80% of its total assets in components of the Underlying Index, which tracks the market value-weighted performance of the largest institutional leveraged loans based on market weightings, spreads, and interest payments. The senior loans included in this ETF may vary in quality, typically falling below investment grade, and are denominated in U.S. dollars. Investors looking for exposure to the senior loan market, with its potential for income and risk-return profiles, may consider the Invesco Senior Loan ETF for their portfolios.
3 min read
