- As of Nov 4, 2026, ETFIQ covers 15 bank loan ETFs, with a median fee of 0.61%, higher than the 0.18% for corporate bond funds.
In plain words
A bank loan ETF owns loans banks have made to companies with weaker credit. They pay a floating rate that resets with short-term rates, so the fund’s price moves little when rates change.
ETFIQ counts 15 funds at a median fee of 0.61%, well above the 0.18% of corporate bond funds, because loans are costly to trade. The main risk is a firm that cannot pay. Loans also settle slowly, so a price can drift from value in a fast market; ETFIQ shows premium and credit mix.
Questions
- Why do loan funds have floating rates?
The loans reset with short-term rates, so the interest changes with them.
- Are loan funds safe from rate rises?
They are less sensitive to rates. They carry credit risk instead.
- Where do I see the credit mix?
On each bond fund page, from its filing.