FLOT: Cash-Like Exposure, But NEAR And MINT Might Be Better

2025-09-03 13:34:48 ET

iShares Floating Rate Bond ETF ( FLOT ) holds a portfolio of investment grade bonds maturing between one month and five years. These bonds have a floating rate and are denominated in the US Dollar. While they are denominated in USD, they could originate from foreign entities. The interest rate is based on reference rates such as LIBOR or SOFR, plus a fixed spread. These characteristics can also be found in the securities that make up the Bloomberg US Floating Rate Note < 5 Years Index. FLOT uses this index as its benchmark, with an aim to track its investments results. This strategy of passively tracking an index is called indexing and the role of the fund advisor (BlackRock), along with its pros and cons is laid out in FLOT's summary prospectus....

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