Franklin Senior Loan ETF

FLBL is an actively managed fund investing in USD-denominated senior loans.

Franklin Senior Loan ETF is the most affordable senior loan ETF with a 0.45% expense ratio. It sports an above-average 8.3% dividend yield and could benefit from a higher for the longer situation. FLBL is a solid, albeit somewhat risky, investment opportunity.

FLBL: A Senior Loan ETF With 8.3% Yield And Strong Performance

The Franklin Senior Loan ETF has generated a total return of almost 7% since our 'Buy' rating, with a low drawdown, mainly driven by its dividend yield. Despite the high rates environment, the lack of significant defaults has contributed to the smooth performance of the ETF. While historically low, default rates have begun to climb in 2024. This could negatively impact the value of the fund's holdings.

FLBL: Moving This Loan Fund To Hold (Rating Downgrade)

Franklin Senior Loan ETF offers access to floating rate exposure and has an impressive 30-day SEC yield exceeding 8.9%. FLBL has a conservative composition with a focus on the healthcare sector and offers protection against credit risk. FLBL faces competition from other leveraged funds, but its low interest rate risk and below-average expense ratio make it an attractive choice.

FLBL: The Cycle Shift Doesn't Help

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Hello, VettaFi Voices! The Wall Street Journal mentioned today that the 10-year Treasury yield is the highest it's been since 2007 as we head into another earnings season.

VettaFi Voices On: Investments for a (Not so) Scary Market

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Amid the prospect of higher interest rates for a longer-than-expected period, investors are flocking to bank loan ETFs.

5 Bank Loan ETFs to Capitalize on Higher Rates

Senior loan funds offer investors strong, growing dividends. These funds tend to be relatively expensive too, with the exception of Franklin Senior Loan ETF. An overview of the fund follows.

FLBL: Cheapest Senior Loan ETF, Growing 8.0% Yield

Senior loan ETFs can offer protection against rising interest rates.

An Introduction to Senior Loan ETFs

Franklin Senior Loan ETF is an exchange-traded fund that invests in floating rate leveraged loans. The fund is a fairly new addition to the Franklin Templeton platform, having IPO-ed in 2018. The fund has a 0% leverage ratio and a granular portfolio construction, with healthcare being the top sectoral exposure.

FLBL: Conservative Fund To Take Advantage Of Higher Rates, 9% Yield

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Franklin Templeton is further cementing its status as a rising player in the exchange traded funds industry by announcing that it's changing the names of more than a dozen of its ETFs and swapping underlying indexes on several others. Those changes went into effect on August 1.

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The Federal Reserve raised interest rates by 50 basis points last week to fight record inflation, with Fed Chair Jerome H. Powell announcing that “Inflation is much too high,” and that the Federal Open Market Committee is “moving expeditiously to bring it back down.

News for Franklin Senior Loan ETF ETF (FLBL)