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The primary aim of this fund is to provide income, achieved through careful and responsible investment strategies.
Is LONZ's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
PIMCO Senior Loan Active Exchange-Traded Fund (NYSEARCA:LONZ - Get Free Report) was the recipient of a large growth in short interest in September. As of September 30th, there was short interest totaling 175,170 shares, a growth of 190.9% from the September 15th total of 60,221 shares. Based on an average daily trading volume, of 102,200
The PIMCO Senior Loan Active Exchange-Traded Fund ETF is an active senior loan ETF managed by PIMCO. The fund provides diversified exposure to these high-yield investments, with an 8.6% dividend yield, and a 7.3% yield to maturity. It has outperformed most other senior loan ETFs since inception, with spottier performance relative to higher-yield CLO ETFs.
Invesco Senior Loan ETF (BKLN) is rated BUY as a core income portfolio holding due to its conservative ratings profile and minimal distressed exposure. BKLN offers liquidity, transparency, and low expense, tracking the 100 largest leveraged loans with a current ~7% yield and only 0.02% in distressed assets. Bank loans provide senior secured, floating-rate income with lower volatility than BDCs, but sector risks—especially software—remain material.
Downgrade LONZ to 'Sell' as the current 6.11% yield is insufficient for single-B risk in today's macro environment. Fund's low historical drawdown (-4%) may not hold in a recession; expect up to -10% downside in economic contraction. High expense ratio and floating rate sensitivity mean yields will drop further when the Fed cuts rates, worsening risk/reward.
We are downgrading the PIMCO Senior Loan Active Exchange-Traded Fund to 'Hold' due to ongoing monetary easing and decreasing yields. The Fed's rate cuts have significantly lowered the yield curve, impacting LONZ's dividend yield, which is set to decline further. The Fund's overweight position in single-B credits, combined with historically low credit spreads, presents heightened risk in a potential recessionary scenario.