PowerShares Launches Bank-Loan ETF
Global X debuts Argentina ETF, plus, the week's best- and worst-performing ETFs.
On March 3, PowerShares rolled out the first-ever ETF investing in leveraged bank loans: PowerShares Senior Loan Portfolio (BKLN).
The new fund, which opened to heavy volumes of 1.5 million shares in its first trading day, tracks the market-weighted performance of the largest institutional senior loans, or leveraged loans, based on market weightings, spreads, and interest payments. The fund tracks the S&P/LSTA U.S. Leveraged Loan 100 Index, which contains 100 loans (out of the 1,100-loan S&P/LSTA Leveraged Loan Index) that are below investment grade or that are deemed to be of a comparable quality. BKLN also is permitted to invest in loans to non-U.S. borrowers.
Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.