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Floating rate notes are investment-grade bonds with coupons that periodically reset using a short-term interest rate. FRNs are primarily issued by corporations. Most floating rate notes pay coupons quarterly, but a few pay monthly or semi-annually. The coupon reset dates are typically three months after the bond was issued.
FLOT ETF Review
- Put Cash to Work: FRNs can be used to keep cash invested without taking on too much risk
- Lower Duration: FRNs can be paired with other fixed-income holdings to reduce overall portfolio duration
- Hedge Against Changing Interest Rates: The coupon payments of FRNs adjust with changes in interest rates
What is the Best Floating Rate ETF?
- BKUI: BNY Mellon Ultra Short Income ETF
- FLOT: iShares Floating Rate Bond ETF
- FLRN: SPDR Bloomberg Investment Grade Floating Rate ETF
- FLRT: Pacer Pacific Asset Floating Rate High Income ETF
- FLTR: VanEck IG Floating Rate ETF
- FLUD: Franklin Ultra Short Bond ETF
- GSY: Invesco Ultra Short Duration ETF
- ICSH: iShares Ultra Short-Term Bond ETF
- JPST: JPMorgan Ultra-Short Income ETF
- MINT: PIMCO Enhanced Short Maturity Active Exchange-Traded Fund
- PULS: PGIM Ultra Short Bond ETF
- RAVI: FlexShares Ultra-Short Income Fund
- SPSB: SPDR Portfolio Short Term Corporate Bond ETF
- TBUX: T. Rowe Price Ultra Short-Term Bond ETF
- ULST: SPDR SSgA Ultra Short Term Bond ETF
- ULTR: IQ Ultra Short Duration ETF
- VRIG: Invesco Variable Rate Investment Grade ETF
- VUSB: Vanguard Ultra-Short Bond ETF
Here is a table comparing similar floating rate ETFs as of August 31, 2023.
Manager | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
ETF | FLOT | VRIG | JPST | PULS | FLRN | FLTR |
Inception | 2011-06-14 | 2016-09-22 | 2017-05-17 | 2018-04-05 | 2011-11-30 | 2011-04-25 |
MER | 0.15% | 0.30% | 0.18% | 0.15% | 0.15% | 0.14% |
AUM | $7,257,345,624 | $661,900,000 | $22,790,000,000 | $5,279,880,402 | $2,373,090,000 | $1,150,000,000 |
1Y | 5.84% | 6.07% | 4.08% | 5.34% | 5.74% | 6.62% |
3Y | 2.07% | 2.55% | 1.49% | 2.15% | 2.07% | 2.33% |
5Y | 2.12% | 2.47% | 2.07% | 2.24% | 2.11% | 2.43% |
10Y | 1.63% | N/A | N/A | N/A | 1.67% | 1.97% |
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