High yield funds (HYG, JNK) may be out of favor, but senior bank loan ETFs are getting the...

|By:, SA News Editor

High yield funds (HYG, JNK) may be out of favor, but senior bank loan ETFs are getting the business, having grown AUM by $18B so far this year, more than the $11.5B for all of 2012. Senior bank loans (BKLN, SNLN) are of similar credit quality to junk bonds, but have the attraction of being floating rate and higher up in the corporate structure. Investment grade funds are available too: FLOT, FLRN, FLTR.