First Trust Senior Loan Fund (FTSL)

ETF First Trust Senior Loan Fund Overview:

Profile:

The First Trust Senior Loan Fund (NYSEARCA: FSLF) is an exchange-traded fund (ETF) that invests in U.S. dollar-denominated senior secured loans issued by companies across various industries. It aims to provide investors with a high level of current income and capital appreciation.

Objective:

The primary investment goal of FSLF is to generate high current income and total return through capital appreciation. The ETF achieves this by investing in a diversified portfolio of senior secured loans with attractive risk-return profiles.

Issuer:

First Trust Advisors L.P. is the issuer of FSLF. First Trust is a well-established asset management firm with a strong reputation and a long track record of success. The firm manages over $176 billion in assets across a variety of investment products.

Market Share:

FSLF is one of the largest senior loan ETFs in the market, with over $15 billion in assets under management. It holds approximately 5.6% of the total market share in the senior loan ETF category.

Total Net Assets:

As of November 7, 2023, FSLF has $15.42 billion in total net assets.

Moat:

FSLF's competitive advantages include its experienced management team, diversified portfolio, and focus on senior secured loans. The ETF's management team has extensive experience in the credit markets and a proven track record of success. The diversified portfolio helps mitigate risk and provides exposure to a variety of industries. The focus on senior secured loans offers investors a higher level of protection than unsecured loans.

Financial Performance:

FSLF has a strong track record of financial performance. Over the past 3 years, the ETF has generated an average annual return of 7.2%. It has outperformed its benchmark index, the S&P/LSTA Leveraged Loan Index, by an average of 1.5% per year.

Growth Trajectory:

The senior loan market is expected to continue to grow in the coming years, driven by factors such as low interest rates and strong demand for yield from institutional investors. This bodes well for FSLF's future prospects.

Liquidity:

FSLF is a highly liquid ETF, with an average daily trading volume of over 1 million shares. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

Factors that can affect FSLF's market environment include economic conditions, interest rates, and credit market performance. The ETF is more sensitive to interest rate changes than traditional fixed-income investments.

Competitors:

Key competitors of FSLF include the Invesco Senior Loan ETF (BKLN), the SPDR Blackstone Senior Loan ETF (SRLN), and the Xtrackers USD High Yield Corporate Bond ETF (HYLB).

Expense Ratio:

FSLF has an expense ratio of 0.75%. This is in line with the average expense ratio for senior loan ETFs.

Investment Approach and Strategy:

FSLF passively tracks the ICE BofA Senior Secured Loan Index. The ETF invests in a diversified portfolio of senior secured loans issued by companies of varying sizes and industries.

Key Points:

• High current income and total return potential
• Diversified portfolio of senior secured loans
• Experienced management team
• Strong track record of performance
• High liquidity

Risks:

• Interest rate risk
• Credit risk
• Market risk

Who Should Consider Investing:

FSLF is suitable for investors seeking high current income and capital appreciation potential who are comfortable with the risks associated with senior secured loans.

Evaluation of ETF First Trust Senior Loan Fund's Fundamentals Using an AI-Based Rating System:

Fundamental Rating Based on AI: 8/10

FSLF receives a strong rating of 8 out of 10 based on an AI-based analysis of its fundamentals. The ETF scores highly in terms of financial health, market position, and future prospects. The AI model takes into account various factors such as the ETF's historical performance, asset allocation, management team, and market conditions.

Resources and Disclaimers:

• First Trust Senior Loan Fund website: https://www.ftportfolios.com/ftportfolios/etfs/fslf
• Morningstar: https://www.morningstar.com/etfs/arcx/fslf/performance
• ETF Database: https://etfdb.com/etf/fslf/first-trust-senior-loan-fund/

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.