Invesco Senior Loan ETF

The Invesco Senior Loan ETF is an exchange-traded fund that primarily invests in a diversified portfolio of senior loans. These loans are typically extended to corporations rated below investment grade, offering higher yields in exchange for increased credit risk. One of the ETF’s primary functions is to provide exposure to the senior loan market, which is known for its floating interest rate feature that can serve as a hedge against rising interest rates. Noteworthy for its risk-adjusted returns, the Invesco Senior Loan ETF targets the leveraged loan space, focusing on sectors such as industrial, healthcare, and technology, among others. It typically attracts investors seeking income generation alongside potential capital preservation due to the seniority of the loans in the borrower’s capital structure. Invesco’s asset plays a significant role in broadening investment opportunities by granting retail investors access to a market traditionally dominated by institutional players. The ETF acts as a vital instrument for portfolio diversification, especially for those looking to offset fixed income portfolios in interest rate sensitive environments.