SPDR Blackstone Senior Loan ETF (SRLN): How to Buy

What is the State Street Blackstone Senior Loan ETF?

This is an alternative bond ETF focused entirely on senior loans. Senior loans are secured, first-lien obligations, meaning lenders have priority if the borrower defaults.

In the repayment waterfall, these loans sit above unsecured corporate bonds, preferred shares, and common equity.

Many of these loans have floating interest rates, where the coupon adjusts based on a benchmark such as the Standard Overnight Funds Rate (SOFR), or the cost to banks of borrowing money overnight. This makes them less sensitive to rising interest rates than traditional fixed-rate bonds.

The ETF is actively managed, with the portfolio team aiming to outperform two benchmarks: the Markit iBoxx USD Liquid Leveraged Loan index and the Morningstar LSTA U.S. Leveraged Loan 100 index.

How to buy the State Street Blackstone Senior Loan ETF

1. Step 1: Open your brokerage account: Log in to your brokerage account where you handle your investments.
2. Step 2: Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
3. Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
4. Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Step 5: Submit your order: Confirm the details and submit your buy order.
6. Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Holdings of the State Street Blackstone Senior Loan ETF

The ETF holds roughly 600 senior loans. As of Dec. 10, 2025, the three-month SOFR benchmark was 3.73%, determining the floating-rate payments on many of these loans.

About 46.38% of the portfolio included loans with a SOFR floor of 0.74%, meaning interest payments won’t fall below that level even if benchmark rates decline. The weighted average all-in rate on the loans was 7.32%, representing the interest borrowers pay.

Sector representation is heavily tilted toward technology, which makes up 19.55% of the loans, including semiconductor borrowers. The next-largest sector bucket is banking, finance, insurance, and real estate at 11.86%.

Most loans are rated B or B-, below investment grade. This is normal for the leveraged-loan market but means higher credit risk and more volatility when economic conditions weaken.

Should I invest in the State Street Blackstone Senior Loan ETF?

If you already invest in high-yield bonds and want similar income without adding stock exposure, this ETF can be a natural extension. Senior loans sit above high-yield bonds in the capital structure, making them somewhat better protected in default scenarios. Their floating-rate features also help during rising-rate periods.

However, this remains a high-risk fixed-income product. Loans are below investment grade, liquidity can dry up in stressed markets, and defaults rise during economic downturns. This ETF is better suited to investors who understand credit risk and already have a diversified core bond position elsewhere.

Does the State Street Blackstone Senior Loan ETF pay a dividend?

Yes. Based on the 30-day SEC yield, the fund distributes about 7.1%. These payments fluctuate as benchmark rates change and are largely taxed as ordinary income in taxable accounts.

What is the State Street Blackstone Senior Loan ETF’s expense ratio?

The fund charges a 0.7% expense ratio, or $70 per $10,000 invested each year. This is higher than passive bond ETFs but normal for actively managed portfolios holding complex securities.

Historical performance of the State Street Blackstone Senior Loan ETF

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