What is a floating rate bond ETF?

Bond ETFs with floating interest rates can help investors seek capital preservation, boost current income, reduce interest rate risk, and diversify short-term bond holdings. Floating rate ETFs may offer exposure to U.S. government bonds, corporate bonds, securitized assets and bank loans. WHAT IS A FLOATING RATE BOND?

Is iShares floating rate bond ETF a good investment?

A sound investment process and strong management team underpin iShares Floating Rate Bond ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers. There is no growth data available. There is no investment objective & strategy data available.

What is a bond ETF?

A bond ETF, such as iShares Floating Rate Bond ETF (FLOT), invests in debt with coupon payments calculated in reference to a benchmark rate, like LIBOR. Most bond ETFs offer exposure to securities that pay a fixed coupon over the life of the note, and their value is affected when interest rates rise or fall.