Now, the same firm is reported to have filed for another unique Exchange traded Funds or ETF which will enable the investors and traders to bet their money on Bank Loans - yes, this particular ETF from PowerShares will track the S&P/LSTA U.S. Leveraged Loan 100 Index, which in turn tracks the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments.
So this ETF will enable common investors and traders like you and me to bet our money on bank loans.
Investors should note that bank loans are prone to defaults, so even though ETF's are considered to be the safe kind of investments, there is no guarantee that your money will be protected.
However, the good news is that the benchmark index is a rule based index comprising of several criteria. Although it is claimed that the ETF will try to secure collateral, it should be noted that there is credit risk as well as interest rate fluctuation risk. The benchmark index comprises of only top 100 loan facilities, out of the 1100 loan facilities.
On Which exchange will the PowerShares S&P Bank Loan Portfolio ETF be listed ?
The ETF will be listed on NYSE ARCA exchange.
What is the ticker symbol for PowerShares S&P Bank Loan Portfolio ETF??
No info about that as of now
What is the full name of the PowerShares Bank Loan ETF??
The precise name of the PowerShares Bank Loan ETF is PowerShares S&P Bank Loan Portfolio ETF
What is the underlying benchmark index this S&P/LSTA U.S. Leveraged Loan 100 Index will be tracking??
The PowerShares Bank Loan ETF will track the S&P/LSTA U.S. Leveraged Loan 100 Index by using a representative sampling strategy. It is not known how this sampling strategy will actually work. Continue reading: Risks of PowerShares S&P Bank Loan Portfolio ETF
No comments:
Post a Comment