The Exchange Traded Funds basing on the senior loans. The senior loans are given to corporations by banks and then sold to investors. The main goal of such ETFs is to provide the above-average yields while reducing the effects of the higher interest rates. If a company is close to bankruptcy then investors who have the senior loans are first to be repaid. Investing in the asset class may be risky due to the volatility. In addition, it is believed that investing in the senior loans is less risky than investing in the high-yield bonds but it is more risky than buying investment-grade corporate bonds.
Leveraged Loan, Senior Loan, Income ETF is in the long-term up 12% in 8 years.