First Trust Advisors L.P. will launch the First Trust Senior Loan Fund (FTSL), its fourth actively managed ETF, on May 2. The fund will bring the firm’s total number of ETFs to 76.
“While an index-based senior loan ETF principally considers the market value of the debt issuance outstanding in its selection methodology, an actively managed ETF gives us the latitude to utilize our rigorous credit process in evaluating an individual company’s ability to repay its debt, which we believe is paramount to driving attractive risk-adjusted and absolute returns over the long term,” said William Housey, senior vice president and senior portfolio manager at First Trust, who serves as one of the fund’s portfolio managers.
“Many fixed-income investors are looking for alternative sources of income that have historically performed well when interest rates have increased, such as senior loans, and we believe an actively managed ETF is an ideal way for investors to access a diversified portfolio of senior loans while gaining enhanced transparency and liquidity.”
