Seeking Alpha

PowerShares Senior Loan Portfolio Named ETF Product Of The Year

  • The PowerShares Senior Loan Portfolio (BKLN) was honored with the William F. Sharpe Award for ETF Product of the Year this morning.
  • Since opening in March 2011 and becoming the first floating-rate senior loan ETF, this Invesco (IVZ) fund has amassed over $6.2 billion in assets under management, making it easily the largest player in the space.
  • "BKLN was a groundbreaking listing for investors seeking to reduce duration in their bond holdings and has become a flagship ETF in this space" stated Gregory Stoeckle, President and Managing Director of Invesco Senior Secured Management, Inc, in a press release.
  • Also receiving honors this morning is the PowerShares S&P 500 Downside Hedged Portfolio (PHDG), which was named the ETF Innovation of the Year, along with its underlying index: the S&P 500 Dynamic VEQTOR Index.
  • Other senior loan ETFs: SRLN, SNLN, FTSL
  • Other VIX ETFs: VXX, UVXY, TVIX, XIV, VIXY, SVXY, VXZ, ZIV, VIXM, VQT, CVOL, XVZ, VIIX, VIXH, ACWV, XVIX, XXV, TVIZ, IVOP, VIIZ
Comments (12)
  • Jon Peter
    , contributor
    Comments (778) | Send Message
     
    Strange how (PDHG) wins an award when a competing product that tracks the same exact index has been around for 3 plus years. (VQT).
    19 Dec 2013, 11:55 AM Reply Like
  • satan2liberals
    , contributor
    Comments (1206) | Send Message
     
    Not only that but both vqt and pdhg are both losers.
    Trust me I tried to love them but the more I researched the worse they looked short and long term.
    26 Dec 2013, 10:18 PM Reply Like
  • Jon Peter
    , contributor
    Comments (778) | Send Message
     
    When we have that 10+ percent correction, they will both
    significantly outperform the S&P. But in big non stop bull markets
    like we have now - you're right they will lag big-time.
    Still like it though - as a core steady holding.
    I have other race horses doing the heavy lifting.
    27 Dec 2013, 08:34 AM Reply Like
  • satan2liberals
    , contributor
    Comments (1206) | Send Message
     
    Jon peter:When we have that 10+ percent correction, they will both
    significantly outperform the S&P.

     

    S2L: I believed that as well until I studied their index back test data.
    27 Dec 2013, 09:02 AM Reply Like
  • Jon Peter
    , contributor
    Comments (778) | Send Message
     
    The big gains assume the the vix futures go into backwardation
    that's when the volatility portion of VQT and PDHG really rise.
    I too studied the old backtested data.
    27 Dec 2013, 02:08 PM Reply Like
  • Jon Peter
    , contributor
    Comments (778) | Send Message
     
    S2L; In 2011 we had a 19% correction. VQT had nice gains.
    http://bit.ly/1llFrWK
    27 Dec 2013, 02:22 PM Reply Like
  • satan2liberals
    , contributor
    Comments (1206) | Send Message
     
    JonPeter "The big gains assume the the vix futures go into backwardation
    that's when the volatility portion of VQT and PDHG really rise.
    I too studied the old backtested data."

     

    S2L: Did you look at the data as a chart.

     

    I compared them to vspy, spy, ^put, sdy and came away comparatively unimpressed .
    The hedge crippled longer term return and they are slow to respond to a rise in implied volatility.

     

    Even if volatility rises, If it manifests in discrete packets of volatility I don't think they will benefit a portfolio at all.
    27 Dec 2013, 02:31 PM Reply Like
  • satan2liberals
    , contributor
    Comments (1206) | Send Message
     
    JP "S2L; In 2011 we had a 19% correction. VQT had nice gains."
    http://bit.ly/1llFrWK

     

    S2L: Yes but chart vix on there to see how much implied volatility was required to make it briefly look good.
    You may need to chart vix separately to compare scale of 2011 spike.
    http://bit.ly/1llFrWK
    27 Dec 2013, 02:43 PM Reply Like
  • bbro
    , contributor
    Comments (9621) | Send Message
     
    BKLN up 3.81% YTD not bad for a fixed income product this year...
    19 Dec 2013, 12:17 PM Reply Like
  • jeborte
    , contributor
    Comments (20) | Send Message
     
    Proud moment for all of us that work in the Corporate loan market.
    19 Dec 2013, 12:21 PM Reply Like
  • Floyd410
    , contributor
    Comments (50) | Send Message
     
    I like BKLN for a few reasons. 1-Mostly all of the loans have a Libor floor so you're still getting 4%. 2-When interest rates eventually rise and the libor contracts reset (usually multiple tranches 30/60/90 and 120 days staggard) we will get to participate. 3-Top of the capital structure protection as lenders would take control of assets. Only not sure how we would participate in the new equity if any of these companies filed bk since it would be up to the fund manager to still hold on to the debt. That's always the wild card in owning a bond fund vs actual bonds.
    19 Dec 2013, 01:41 PM Reply Like
  • cockynewbie
    , contributor
    Comments (14) | Send Message
     
    LOL ETF of the year is down for year. UPRO is the ETF of the year.
    19 Dec 2013, 04:30 PM Reply Like
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