(FLOT) iShares Floating Rate Bond - Ratings and Ratios

The iShares $ Floating Rate Bond UCITS ETF USD (Dist) is an exchange-traded fund that tracks the Morningstar US Corp Bd TR USD index, providing exposure to USD-denominated corporate bonds with floating interest rates. With an AUM of $517.88M, it is a moderately sized ETF.

As a floating rate bond ETF, FLOT is designed to minimize interest rate risk by investing in bonds with floating coupons that reset periodically based on a reference rate. This makes it an attractive option for investors seeking to reduce their exposure to interest rate fluctuations. The funds underlying index is comprised of USD corporate bonds, which are typically issued by high-quality companies with strong credit profiles.

To evaluate the performance of FLOT, we can consider key performance indicators (KPIs) such as yield, duration, and credit quality. While the exact yield is not provided, we can infer that it is likely to be competitive with other USD corporate bond ETFs. The funds duration is likely to be low due to its floating rate nature, which reduces its sensitivity to interest rate changes. Credit quality is also an important consideration, and we can expect the fund to hold a diversified portfolio of investment-grade corporate bonds.

From a trading perspective, FLOTs liquidity and trading costs are important considerations. With a relatively modest AUM, the fund may experience some liquidity constraints, although this is not uncommon for ETFs of this size. Investors should be aware of the funds trading costs, including bid-ask spreads and any applicable fees.

In conclusion, FLOT is a USD corporate bond ETF that offers a unique value proposition through its floating rate structure. By tracking the Morningstar US Corp Bd TR USD index, the fund provides diversified exposure to high-quality corporate bonds. Investors should evaluate the funds KPIs, including yield, duration, and credit quality, to determine its suitability for their investment objectives.