SRLN - SRLN: Simple Senior Loan ETF Strong 8.9% Yield And Performance Track Record
2024-05-29 21:06:42 ET
Summary
- SRLN is an actively managed ETF focusing on senior loans.
- Senior loans are variable rate loans, and so their coupon rates and yields have skyrocketed because of past Fed hikes.
- SRLN itself yields 8.9%, and has outperformed its peers these past few years, and since inception.
I last covered the SPDR Blackstone Senior Loan ETF ( SRLN ), an actively-managed senior loan ETF, in late 2023. In that article, I argued that SRLN's strong, growing yield and low rate risk made the fund a buy. SRLN has posted reasonably good returns since, outperformed most bonds and bond sub-asset classes, and seen double-digit dividend growth. Performance has been quite good, and broadly in-line with expectations.