Invesco Senior Loan ETF

Invesco Senior Loan ETF (BKLN) holds senior loans that banks make to companies with below-investment-grade credit. It aims to track the Morningstar LSTA US Leveraged Loan 100 Index. The loans pay floating rates that reset from time to time, so the fund's income rises and falls with interest rates instead of staying fixed. Its 0.65% yearly fee is above the 0.38% average for the similar funds compared, but below SPDR Blackstone Senior Loan ETF (0.70%).

• Over the year to Oct 27, 2026, BKLN returned +3.9%, 2nd of 8 among similar funds.
• Its 5-year annualized return was +5.5% and its 10-year +4.2%.
• In the 2020 COVID crash it fell 23.7% and regained its old high 8.1 months after the low.
• Its worst full calendar year was 2015 (-3.1%); its best was 2023 (+12.5%).
• The deepest fall in its price history was 24.2% (Jan 8, 2020 to Mar 23, 2020), recovered by Dec 2, 2020.

As of May 31, 2026, the fund held 183 securities; the ten largest made up 14.53% of assets, and 9% sat in cash and money-market holdings.

The bonds mature in 4.6 years on average (weighted by size), with an average coupon of 6.48%.

• Over the three months to May 31, 2026, investors added a net $732.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.06%, +1.05%, +0.34%.

BKLN aims to match the Morningstar LSTA US Leveraged Loan 100 Index, before fees. Morningstar builds the index from the 100 largest institutional leveraged loans and weights each one by its market value. To qualify, a loan must be senior secured, meaning it is paid back before other debts and is backed by company assets. It must also be in US dollars, have a starting term of at least one year and start with at least $50 million borrowed. Most of these loans are rated below investment grade. The index can keep loans whose borrowers have defaulted.

The fund normally puts at least 80% of its assets in index loans. It doesn't buy every loan. It uses "sampling," which means holding a representative group. Invesco Capital Management runs the fund, and Invesco Senior Secured Management is the sub-adviser. As of May 31, 2026, it had 183 holdings: 92.25% in loans and 3.79% in bonds. The largest was a Hologic term loan at about 1.9%.

Loans don't trade on an exchange the way stocks do. The fund buys them from banks either by assignment, where it becomes a lender itself, or by participation, where it owns a share of another lender's portion. That can make loans slower to buy and sell. Turnover was 127%. Borrowers can also repay early, and the fund then has to replace those loans, sometimes with lower-yielding ones.

• BKLN charges 0.65% a year, versus an average of 0.38% for the similar funds below (6th of 8, cheapest first).
• The fee includes a 0.02% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $832 over 10 years (assuming a 5% annual return).

The fund's main appeal is monthly income from floating-rate loans to below-investment-grade companies, not growth or crash protection.

BKLN could add monthly income that moves up and down with interest rates. Its trailing 12-month yield was 6.38% as of October 27, 2026. The fund launched in 2011, so it has no 2008 record. Its losses over full calendar years have been small. The worst year in the prospectus record was 2015, at −2.86%. Sharp drops within a year have been much bigger, though. In the 2020 COVID crash it fell 23.7% in about a month and took roughly eight months to recover. From January to June 2022 it fell 7.3% and needed about seven months to get back. Anyone forced to raise cash during a credit scare could lock in those losses.

The fund costs 0.65% a year. In the SEC's standard $10,000 example, that comes to $66 in the first year. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).