It was not a good quarter for riskier parts of the fixed income market, including leveraged loans. For the three-month period ending October 31, BKL dropped 2.07%, lagging its peers, and benchmark. With markets becoming extremely volatile, investors shunned riskier assets, and instead moved into safer haven assets. If nothing else, this highlights why floating rate notes and loans should only be a portion of your fixed income allocation, and not as many wholesalers may suggest, a core part of it. Since the summer, floaters have been down, and BKL has now given back all the gains it earned in 2014 and the first few months of 2015. But as they say, past performance is not indicative of future performance, and I believe that to be the case here. The market fully expects the U.S. Federal Reserve will start moving interest rates higher in December, which will be a positive for this ETF. That said, there is no rush to get into this, as many of the loans in the portfolio have rate floors in place, which will limit gains until rates move significantly higher. I don’t expect much of a pop in this fund in the near term, but I do like the longer term outlook with it likely rates will begin moving higher soon.