SNLN Fund Description

The Highland/iBoxx Senior Loan ETF tracks a market-value-weighted index of 100 senior loans with remaining maturity greater than one year.

SNLN ETF.com Insight

SNLN delivers exposure to 100 senior loans—floating-rate, high-yield senior debt issued by banks to companies. SNLN’s loans pass a screen for $500M in par outstanding, a spreadLower volume and wider spreads make SNLN less attractive for retail investors over LIBOR of over 125 bps and a few more liquidity criteria. While the floating-rate nature reduces sensitivity to interest rates, SNLN carries significant credit risk in that the portfolio is below investment grade and can include loans from insolvent issuers. Also, a spike in interest rates will make it harder for issuers to service their debt. The fund charges the a low expense ratio, and while asset tally places it at low risk of closure, it hasn’t made major strides in pulling assets away from segment leader BKLN. Lower trading volume and wider spreads make SNLN less attractive for retail investors and make hedging block trades more challenging for liquidity providers. (Insight updated 06/30/2014)

1 Year
Performance [as of 10/16/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
SNLN -1.75% -2.38% 0.10% 0.96% -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

SNLN Top 10 Countries

This chart is unavailable

SNLN Top 10 Sectors

This chart is unavailable

SNLN Top 10 Holdings

This chart is unavailable

SNLN Summary Data

Highland Capital Management

A company that produces and manages ETFs.

11/08/12

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.55%

The net total annual fee a fund holder pays to the issuer.

$311.15 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$4.16 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.09%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

SNLN Portfolio Data

--

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

--

The weighted average of remaining time until maturity for all securities in the portfolio.

--

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

--

The date on which a security's price excludes an upcoming dividend.

--

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

SNLN Index Data

Markit iBoxx USD
Liquid Leveraged Loan Index

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

N/A

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to SNLN

BKLN, FTSL, SRLN

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

SNLN ETF.com Efficiency Insight

SNLN has a low expense ratio which undercuts competing funds including giant BKLN. The reduced cost has helped to produce decent tracking from what we can see so far. (It launched Nov. 2012.) While not as large as some competing funds, SNLN has a decent following, making closure unlikely. (Insight updated 06/30/2014)

Total Return - 06/30/2014
Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
SNLN 0.72% 1.21% 2.37% 4.97% -- -- --
SNLN (NAV) 0.57% 1.41% 2.27% 5.23% -- -- --
Markit iBoxx USD Liquid Leveraged Loan Index 0.60% 1.44% 2.32% 5.48% 5.07% 8.65% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

SNLN Portfolio Management

0.55%

The net total annual fee a fund holder pays to the issuer.

--

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

--

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

--

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

SNLN Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

SNLN Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

No

An indicator of whether or not a fund actively lends its portfolio holdings.

0% / 100%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

SNLN ETF.com Tradability Insight

SNLN can be fairly traded in retail quantities with some effort. The fund trades less than $1M on most days, with manageable spreads. Longer term investors can get in and our fairly with limit orders, but SNLN is no match for BKLN with respect to liquidity. Underlying liquidity is a challenge for both funds as the actual loans in the basket take a long time to settle when trading, which may create challenges for larger players. (Insight updated 06/30/2014)



Average Spread
Premium/Discount
Volume

SNLN ETF.com/ Block LiquidityAs of 10/17/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of SNLN. SNLN is rated a 3 out of 5.

SNLN Tradability

213,187

It is the daily number of shares traded, averaged over the past 45 trading days.

$4.16 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

56,170

Median number of shares traded over the past 45 trading days.

$1.1 M

Median dollar value of shares traded over the past 45 trading days.

0.09%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.02

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

0.05%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.28% / -0.20%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

97.38%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

0.56

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.03%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

--

The total number of net outstanding options contracts for an ETF.

$19.21

The total market value of the assets that an ETF holds less fund expenses.

3

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

SNLN ETF.com Fit Insight

SNLN aims to hold only the largest and most liquid senior loans. The fund places limits on par outstanding and a minimum on active prices available. While this bolsters the liquidity in the underlying securities, it also whittles down the selection universe. Like BKLN and other peers, SNLN takes very little interest rate risk thanks to its floating rate, but earns yield by bearing significant credit risk from its high yield loans. (Insight updated 06/30/2014)

SNLN Sector/Industry Breakdown

SNLN Segment Benchmark
-- --

SNLN Top 10 Holdings

SNLN Top 5 Countries

-- --

SNLN Top 5 Currencies

SNLN Performance Statistics

--

The degree to which the fund and its segment benchmark move up and down in unison.

--

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

--

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

--

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

--

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

SNLN Holdings Statistics

SNLN Segment Benchmark
-- --

The weighted average of remaining time until maturity for all securities in the portfolio.

-- --

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

-- --

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

-- --

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

-- --

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

-- --

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

N/A N/A

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

-- --

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

N/A N/A

Market–value–weighted average credit quality of the portfolio.

SNLN Maturity Distribution

-- --

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

-- --

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

-- --

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

-- --

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

-- --

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

-- --

Percent of the portfolio's exposure to securities with 10+ years until maturity.

SNLN Credit Breakdown

-- --

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

-- --

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

-- --

Percent of portfolio's exposure to A rated bonds (Investment Grade).

-- --

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

-- --

Percent of portfolio's exposure to BB rated bonds (High Yield).

-- --

Percent of portfolio's exposure to B rated bonds (High Yield).

-- --

Percent of portfolio's exposure to CCC rated bonds (High Yield).

-- --

Percent of portfolio's exposure to CC rated bonds (High Yield).

-- --

Percent of portfolio's exposure to C rated bonds (High Yield).