BlackRock Targets $1.4T Loan Market With New Floating-Rate ETF – iShares Broad USD Floating Rate Loan ETF (BATS:USLN)

BlackRock has rolled out a new ETF aimed at expanding investor access to the fast-growing leveraged loan market, a segment of credit that has historically been difficult to access through index-based products.

The asset manager announced the launch of the iShares Broad USD Floating Rate Loan ETF (BATS:USLN), which seeks to track the Morningstar LSTA US Leveraged Loan Broad Select Index. The ETF primarily invests in U.S. dollar-denominated senior secured leveraged loans.

The launch comes as the U.S. leveraged loan market has expanded to roughly $1.4 trillion, bringing it close in size to the high-yield bond market and attracting growing institutional and ETF investor interest.

Expanding Access To Floating-Rate Credit

Leveraged loans typically carry floating interest rates and sit higher in the capital structure than traditional high-yield bonds, making them appealing to investors seeking income with reduced sensitivity to interest-rate fluctuations.

The fund carries a 0.40% net expense ratio.

Adding To BlackRock’s Credit ETF Lineup