The Invesco Senior Loan ETF (NYSE ARCA: BKLN) is designed to track the performance of the largest institutional leveraged loans, which are a type of debt instrument used by companies to raise capital. The fund's investment strategy involves allocating at least 80% of its total assets to the components of the underlying index, which is compiled and maintained by Morningstar, Inc.
The underlying index is market value weighted, meaning that the loans with the largest market value have a greater influence on the index's performance. The index also takes into account the spread and interest payments of the loans, providing a comprehensive view of the senior loan market. This approach allows investors to gain exposure to a diversified portfolio of senior loans, which can provide a regular income stream and potentially lower volatility compared to other types of debt instruments.
The fund is managed by Invesco, a global investment management company with a strong track record of delivering investment solutions to individual and institutional investors. With a presence in over 20 countries, Invesco has the resources and expertise to provide investors with access to a wide range of investment opportunities. You can learn more about Invesco and its investment offerings by visiting their website at http://www.invesco.com/us.
The Invesco Senior Loan ETF is domiciled in the United States, which means that it is subject to US regulations and laws. This provides an added layer of protection for investors, as the fund is required to adhere to strict guidelines and disclosure requirements.