FLOT: iShares Floating Rate Bond ETF
FLOT: iShares Floating Rate Bond ETF

FLOT: iShares Floating Rate Bond ETF

FLOT

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?

Here is a table comparing similar floating rate ETFs as of August 31, 2023.

ManagerBlackRock LogoInvesco LogoJPMorgan Asset Management LogoState Street Global Advisors Logo
ETFFLOTVRIGJPSTPULSFLRNFLTR
Inception2011-06-142016-09-222017-05-172018-04-052011-11-302011-04-25
MER0.15%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
1Y5.84%6.07%4.08%5.34%5.74%6.62%
3Y2.07%2.55%1.49%2.15%2.07%2.33%
5Y2.12%2.47%2.07%2.24%2.11%2.43%
10Y1.63%N/AN/AN/A1.67%1.97%
FLOT ETF