On Thursday, First Trust rolled out an actively managed exchange-traded fund devoted to bank loans, which are mostly below-investment-grade securities that also are known as leveraged loans or senior loans.
First Trust Senior Loan Fund (FTSL) is the latest entrant into what is becoming a crowded field of bank-loan ETFs. The pioneer in the space is the actively managed PowerShares Senior Loan Portfolio (BKLN). That fund has been followed more recently by the passively managed Highland/iBoxx Senior Loan ETF (SNLN) and the actively managed SPDR Blackstone/GSO Senior Loan ETF (SRLN).
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Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.