BKLN

The Invesco Senior Loan ETF (BKLN) is an exchange-traded fund designed to provide exposure to the U.S. senior secured loan market, also commonly referred to as leveraged loans or bank loans. The ETF is managed by Invesco and trades under the ticker BKLN on the NYSE Arca.

Classified as a floating-rate corporate bond ETF, the fund seeks to reflect, before fees and expenses, the performance of the Morningstar LSTA US Leveraged Loan Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes floating-rate syndicated corporate loans issued by U.S. companies with below-investment-grade credit profiles.

Composition / Exposure profile

BKLN provides exposure primarily associated with:

• Senior secured loans.
• U.S. leveraged loans.
• Floating-rate corporate credit.
• Below-investment-grade issuers.
• U.S. credit markets.
• Corporate fixed-income instruments.
• Credit spreads.
• Floating interest rates.

The ETF’s performance is particularly sensitive to corporate-credit conditions, financial-market liquidity, and changes in Federal Reserve monetary policy.

Because the underlying loans carry floating interest rates, the fund generally exhibits lower traditional duration sensitivity compared to fixed-rate corporate bonds. However, fluctuations in credit spreads, rising corporate default risk, and deteriorating economic conditions may directly affect the ETF’s behavior.

Structure and costs

BKLN shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. BKLN may distribute income derived from interest payments generated by the corporate loans held within the portfolio.

Because the ETF maintains exposure to leveraged loans, its performance may exhibit elevated sensitivity to corporate-credit conditions and liquidity within U.S. financial markets.

History and evolution of the ETF

The Invesco Senior Loan ETF was launched in 2011 during a period marked by growing demand for floating-rate fixed-income instruments following the low-interest-rate environment in the United States.

Since inception, the fund has reflected movements associated with the U.S. leveraged-loan market, including changes in credit spreads, fluctuations in Federal Reserve monetary policy, and developments in corporate-financing conditions.

In recent years, BKLN has reflected U.S. monetary-tightening cycles, rising short-term interest rates, volatility within corporate-credit markets, and evolving financial-market liquidity conditions.

Additional Information

Invesco Senior Loan ET (United States) is an exchange-traded fund (ETF), with assets under management totaling $7.16 Billions.

Over the past 12 months, Invesco Senior Loan ET recorded a return of 4.39%, with its price trading between $20.21 and $21.06 during the same period.

The ETF is traded under the ticker BKLN.