Invesco launches first senior loan ETF

Investors continue to demand increased yield, as well as protection against the threat of rising interest rates. To meet these demands Invesco Canada has launched the PowerShares Senior Loan Index ETF, which began trading on the TSX today.

It’s Canada’s first senior loan ETF and provides access to an asset class with historically higher yield compared to other fixed-income securities. The short duration of such loands provides some security against borrower default, while reducing overall interest-rate sensitivity.

“Senior loans have low correlation to other fixed-income segments,” said Michael Cooke, head of distribution for PowerShares Canada. “With this new ETF, Invesco Canada is helping to open up an asset class that has traditionally been traded exclusively by institutional investors.”

This new ETF seeks to replicate the performance of the S&P/LSTA U.S. Leveraged Loan 100 Index and gives investors exposure to the largest 100 loan facilities drawn from a larger benchmark—the S&P/LSTA Leveraged Loan Index.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.