Invesco Senior Loan ETF

The Invesco Senior Loan ETF is a type of exchange-traded fund designed to track the performance of the S&P/LSTA U.S. Leveraged Loan 100 Index. Its primary function is to provide investors with exposure to the investment-grade senior loans market. These loans, typically offered to corporations with higher credit risk, are characterized by their seniority in the capital structure, meaning they take priority over other debt instruments in case of borrower default. Notably, the fund focuses on floating-rate loans, which adjust with changes in interest rates, potentially providing a hedge against rising rates. The Invesco Senior Loan ETF impacts sectors such as finance and industrials, where companies often seek leveraged loans for operations or expansions. In the financial market, this ETF plays a significant role by offering diversification and potential income through exposure to an otherwise hard-to-access segment of the debt market, catering to those seeking high yield and income generation.