SPDR Blackstone Senior Loan ETFNYSE American: SRLN

Better than expected inflation data prompts the market to price in more than three rate cuts in 2024. Lower rates leading to capital outflows from floating rate assets into fixed rate investments. SRLN underperforms peers due to high standard deviation, drawdown, and expense ratio, making it a sell in current market conditions.

SPDR Blackstone Senior Loan ETF seeks to provide current income while preserving capital by investing in senior loans. SRLN is overweight in single-B leveraged loans and has a low concentration in CCC-rated loans. The Fund has poor analytics compared to its peers and has historically underperformed the leveraged loan index.

Floating rate investments like SRLN may see lower forward returns due to the Fed's plan to lower interest rates in 2024. SRLN has underperformed passive leveraged loan ETFs and has not lived up to its mandate. Investors interested in floating-rate leveraged loans may want to consider CLO ETFs like the JBBB ETF, which has outperformed SRLN and offers similar distribution yields with higher credit quality.

SPDR Blackstone Senior Loan ETF provides exposure to senior loans and aims to generate current income while preserving capital. Senior loans are high-yield debt obligations backed by the borrower's assets, offering protection against inflation but carrying higher credit risk. The SRLN ETF's portfolio is diversified across various sectors, with no AAA rated holdings, and has shown competitive performance compared to similar ETFs.