Senior Loan ETF suggestions on TSX

Hi Guys,
Do we have any such ETFs (Senior Loan) on TSX? If yes, do you suggest having them in the portfolio?
I would appreciate if you could explain the business model of such funds.

While reading about Invesco Senior Loan ETF (USD listed) what I understood that such ETFs are for retired persons who wants their capital security and regular income of around 5-7% returns, not sure if that is correct.

Wil wait for your comments and advise.

Marked as spam

Asked on December 24, 2020 2:15 am

0 views

▲

▼

✔

Private answer

From what I've looked up, we have a few. I'm not familiar with these types of products.

But, from looking at a few returns from popular Canadian senior loan ETFs, 5-7% would be an exception, not the rule.

In fact, if we look at HSL, one of Horizons products, we can see 5 year annualized returns of 2.21%, and with Horizon, their performance metrics are as if you've reinvested the dividends.

Another would be FSL.A, which has 5 year annual returns of 2.90%.

Another issue would be the overall volume of these ETFs. I can see them posing a liquidity issue as well.

Marked as spam

Posted by Dan Kent

Answered on December 24, 2020 10:11 am

« Back to Previous Page