FLRT vs SEIX

FLRTCPacer Aristotle Pacific Floating Rate High Income ETF

SEIXBVirtus Seix Senior Loan ETF

In short

FLRT A bank-loan specialist parked in a high-yield crowd. FLRT buys floating-rate debt from below-investment-grade borrowers, so coupons reset with short-term rates instead of sitting fixed, and a credit sub-adviser picks the paper. Running since 2015.

SEIX Most funds in this corner of the bond market buy fixed-rate high-yield bonds and follow an index. SEIX does neither: an actively picked book of senior loans built around one job, a high level of current income, paid out monthly.

Stated mandate

FLRT The fund seeks high current income by investing mainly in floating-rate loans issued by non-investment-grade companies; this exposure may also help hedge rising interest rates.

SEIX The Fund seeks to provide a high level of current income.

Why people hold it

• FLRT Floating-rate coupons reset with short-term rates, which is why Pacer frames the portfolio as an income source that can also hedge rising rates rather than a long-duration bond bet.paceretfs.com
• Real loan-market pedigree behind the wheel: Aristotle Pacific Capital, formerly Pacific Asset Management, sub-advises and assembles a few hundred positions credit by credit.paceretfs.com
• Income arrives monthly, not quarterly.
• Not a freshly minted launch: the strategy has traded since 2015 and survived a fund reorganization along the way.paceretfs.com

• SEIX Senior loans, not high-yield bonds. A different slice of corporate credit than the index trackers that dominate this category.
• Actively run, roughly 200 loans chosen by the Seix credit team rather than whatever a benchmark happens to hold.
• Cash lands monthly, which matches a mandate written around current income rather than price appreciation.
• Trading since 2019, mid-sized, and moderately traded day to day, so the strategy has a real operating history behind it.

Worth knowing

• FLRT Active pricing: 0.60% a year, above the roughly 0.40% typical of high-yield ETFs, and index rivals such as SCYB and SPHY charge a small fraction of that.
• The S&P/LSTA Leveraged Loan 100 is the yardstick, not the blueprint. Holdings are chosen actively, so the portfolio can look quite different from the loan market it gets measured against.paceretfs.com
• The prospectus flags liquidity, CLO and asset-backed risks alongside high-yield credit risk. Loan paper can get harder to move when markets tighten up.paceretfs.com

• SEIX 0.57% a year, above the 0.40% category norm and far above index trackers like SCYB at 0.03% or SPHY at 0.05%. Hand-picked loan credit carries a price tag.
• No declared index to measure against. Outcomes ride on the manager's loan selection, so the usual tracking yardstick doesn't apply.
• It is grouped with high-yield bond funds, so side-by-side comparisons line up the risk bucket, not the instrument being bought.

Full FLRT profile⁠

Full SEIX profile⁠