- Senior: Senior bank loans are debt obligations of a company and are generally paid before other creditors and equity
- Secured: Secured by a first lien claim on assets of the company
- Floating Rate Loans: Base rate plus a spread with a potential income stream that floats with interest rates
The Highland iBoxx Senior Loan ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Markit iBoxx Liquid Leveraged Loan Index (the “Underlying Index”).
- Rules based index
- Consists of approximately 100 of the largest, most liquid leveraged loans
- Measured by the number of active market participants trading the security and the dollar face amount of outstanding senior loans issued
- Loans eligible for inclusion in the Underlying Index are measured by type, size, liquidity, spread, credit rating and minimum time to maturity.
Opportunities in Senior Bank Loans
High Yield: Potential for high yield given coupon must compensate investors for credit risk
Lower Duration: Lower duration given floating rate nature of the assets
Diversification: Bank loans have exhibited historically low correlation to other risk assets
Transparency & Liquidity: Large-capitalized liquid loans in NASDAQ exchanged-traded ETF Structure
Markit iBoxx Liquid Loan Index
|Historical Returns & NAV (08/10/2022)|
|Net Asset Value (NAV)||$15.1866|
|Bid/Ask Midpoint Price||$15.22|
|Prem/Disc to NAV Chart|
|Fund Characteristics (06/30/2022)|
|Weighted Avg Maturity (yrs)||4.37|
|Yield to Maturity (%)||6.84|
|Days to Reset||33.50|
|Weighted Avg Coupon (%)||4.38|
|30 Day SEC Yield (%)||5.79|
|Unsubsidized 30 Day Yield (%)||6.26|
|Number of Holdings||87|
View All Fund Holdings » Holdings are subject to change.
Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Beginning 11/2/20, the market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. Prior to 11/2/20, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of (4:00 PM Eastern Time).
Other Forms, Filings, and Literature
The Highland/iBoxx Senior Loan ETF is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Highland Capital Management or any of its affiliates. Check the background of SIDCO on FINRA’s BrokerCheck.
Carefully consider the investment objectives, risk factors, charges, and expenses of the Fund before investing. This and additional information about the Fund can be found in the full or summary prospectus, which may be obtained by calling 1-855-799-4757 or by visiting the Literature tab above. Read the prospectus carefully before investing.
- Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). The rating categories reflected are issued by Standards and Poor’s, a Nationally Recognized Statistical Rating Organization (“NRSRO’). The ratings used were those for the specific position or debt issuer held in the Fund as of the date of the latest quarterly fact sheet. Quality ratings reflect the credit quality of the underlying positions in the fund portfolio and not the fund itself. A fund’s portfolio and composition is subject to change.
Leveraged Loans are loans to companies that typically already have a high amount of debt and are often characterized by lower credit ratings or higher interest rates.
Investing involves risk, including the possible loss of principal.
The price used to calculate market returns (“Market Price”) of the Fund generally is determined using the midpoint between the bid and the ask on the primary securities exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Investing involves risk, including the possible loss of principal. There is no guarantee the Fund will meet its investment objectives. The risks associated with Senior Loans are similar to the risks of below investment grade securities, although Senior Loans are typically senior and secured in contrast to other below investment grade securities, which are often subordinated and unsecured. Narrowly focused funds typically exhibit higher volatility. The Fund is subject to interest rate risk and will decline in value as interest rates rise. The Fund is non-diversified, and an investment in the Fund could fluctuate in value more than an investment in a diversified fund. The Fund may invest in derivatives which are often more volatile than other investments and may magnify the Fund’s gains or losses.
All registered investment companies, including the Highland Funds, are obliged to distribute portfolio gains to shareholders at year’s end regardless of performance. Trading the Highland iBoxx Senior Loan ETF will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer. There is no guarantee that dividends will be paid. To receive the distribution, you must be a registered shareholder of the ETF on the record date, and must have placed the ETF trade prior to the ex-date. Distributions are paid to shareholders on the payable date. Past distributions are not indicative of future trends. Please consult your tax professional or financial advisor for more information regarding your tax situation.
The Markit iBoxx Liquid Leveraged Loan Index has been licensed for use by Highland Capital Management Fund Advisors. The Highland iBoxx Senior Loan ETF is not sponsored, endorsed, issued, sold, or promoted by the Markit iBoxx Liquid Leveraged Loan Index, nor does this company make any representations regarding the advisability of investing in the Highland iBoxx Senior Loan ETF.
Glossary: Click for important terms and definitions
Data Source: SEI Investments Global Funds Services
The Highland iBoxx Senior Loan ETF is distributed by SEI Investments Distribution Co., which is not affiliated with Highland Capital Management or any of its affiliates.