US-listed · NYSE Arca · FIF-eligible (above NZ$50K)
Invesco BKLN Invesco Senior Loan ETF
Tracks the Morningstar LSTA US Leveraged Loan 100 Index — floating-rate senior loans, monthly distribution.
Updated Reviewed quarterly
BKLN holds below-investment-grade credit (most loans rated BB or B). Default rates rise sharply in recessions; liquidity in the underlying loan market is thinner than for investment-grade bonds. The high yield reflects credit risk, not a free lunch — read Invesco's prospectus before investing.
About this fund
What is BKLN?
BKLN is the US-listed ticker for Invesco Senior Loan ETF, issued by Invesco. Tracks the Morningstar LSTA US Leveraged Loan 100 Index — floating-rate senior loans, monthly distribution. TER is 0.65% per year, with a trailing 12-month distribution yield of approximately 7.5%. Distributions are paid monthly.
How to buy
Where can I buy BKLN from New Zealand?
Hatch NZ-built. US$3 flat per trade, ~0.5% FX.
Stake Commission-free US shares; ~0.7% FX.
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Interactive Brokers Tiered commissions; FX margin ~0.002% (lowest published of platforms reviewed).
See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is BKLN taxed for NZ investors?
BKLN is US-listed, so it sits in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, the FIF regime does not apply and you pay tax on dividends only.
Above NZ$50K cost basis, most NZ retail investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate. FDR vs CV method →
US dividends carry 15% US withholding tax under the NZ–US tax treaty (file a W-8BEN with your broker; without it, the rate is 30%). The 15% can be claimed as a foreign tax credit on your IR3.
Tax outcomes depend on your portfolio size, marginal rate, and FDR-vs-CV election. See PIE vs FIF for the full comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about BKLN
What is the BKLN ETF? ⌄
BKLN is the Invesco Senior Loan ETF — it tracks the Morningstar LSTA US Leveraged Loan 100 Index, holding senior secured floating-rate loans to US companies. TER is 0.65%, distributions paid monthly. Senior loans rank above traditional bonds in the capital structure.
Why does BKLN pay such a high yield? ⌄
Senior loans pay floating-rate coupons (typically SOFR + a spread of 200-400 bps), so they reset higher when short-term rates rise. They are also lower in credit quality than investment-grade bonds (most are rated BB or B), and the higher yield compensates investors for that credit risk. Yields of ~7.5% are typical in mid-cycle rate environments.
Can NZ residents buy BKLN? ⌄
Yes. BKLN is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Once your overseas-share holdings exceed NZ$50,000 cost basis, FIF rules apply. File a W-8BEN to apply the 15% NZ–US treaty withholding rate.
What's the main risk in BKLN? ⌄
Senior loans are below-investment-grade credits — defaults rise sharply in recessions. Liquidity in the underlying loan market is also thinner than corporate bonds, which can widen bid-ask spreads in market stress. Suited to investors who can hold through credit cycles and want floating-rate income.
Related ETFs and resources
SCHZ — Schwab Intermediate Treasury ETF
US government-credit-quality alternative; lower yield, lower credit risk.
JEPI — JPMorgan Equity Premium Income
Equity-income alternative for high-yield seekers.
JEPQ — JPMorgan Nasdaq Equity Premium
Nasdaq-tilted covered-call income strategy.
FIF tax explained
When FIF applies (NZ$50K threshold) and how to file.
Compare NZ platforms
Hatch, Sharesies, Stake, Interactive Brokers — fee comparison.