FLTR: High Quality Floating Rate Exposure

2025-05-12 12:37:16 ET

Summary

• VanEck IG Floating Rate ETF is a fund focused on investment-grade floating rate notes; the latest drawdowns were minimal, helping to highlight its relatively lower volatility.
• FLTR could be a lower-risk alternative to FINS that we covered recently, avoiding leverage and the added volatility of CEF discount/premiums.
• FLTR's portfolio is highly diversified and tilted towards investment-grade financial sector holdings, helping to produce minimal losses but carries a reasonable yield.

Written by Nick Ackerman, co-produced by Stanford Chemist.

We recently touched on Angel Oak Financial Strategies Income Term Fund ( FINS ), and another fund, VanEck IG Floating Rate ETF ( FLTR ), had come to mind. FLTR is an exchange-traded fund, or ETF, rather than a closed-end fund, or CEF, like FINS. While they aren't exact matches, they do offer some similarities....

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