iShares Floating Rate Bond

ETF description

The iShares Floating Rate Bond ETF provides investors with exposure to U.S. dollar‑denominated, investment‑grade floating rate bonds. By tracking the Bloomberg U.S. Floating Rate Note < 5 Years index, this ETF includes a range of bonds whose interest payments adjust based on prevailing short‑term interest rates, typically every one to three months. The ETF aims to offer income with reduced interest rate risk compared to fixed‑rate bonds, making it an attractive option during periods of rising interest rates. This ETF is designed for investors seeking to benefit from adjustable interest payments, providing a defensive fixed‑income strategy in a diversified bond portfolio.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Floating Rate Bond index offers investors a strategic tool for managing interest rate risk. By tracking bonds with adjustable interest rates, this index provides a hedge against rising rates and aims to maintain more stable income. The index captures the performance of floating rate bonds, offering a valuable resource for those looking to optimize their bond investments in a dynamic interest rate environment.