Summary
- FLOT invests in a diversified group of over 350 floating rate bonds.
- This iShares ETF has an average credit rating of A, as it is primarily focused on corporate bonds in the AA to BBB range.
- There's a lot to like about this ETF, especially in a rising rate environment.
- But this is also an ETF capable of dropping 12% in 2 weeks, as it did during the last credit "event" in 2020. That memory has not faded for me.
- FLOT gets a Hold rating from me, plus a spot on my watchlist of ETFs I am willing to hand a buy rating to once the credit market risk has been reduced.
For further details see:
FLOT: Floating Rate ETF Checks Many Boxes, But Rated Hold For Now