iShares Floating Rate Bond

ETF description

This ETF invests in floating rate bonds, which are debt securities with interest payments that adjust based on changes in short‑term interest rates. The fund aims to provide a stable source of income while offering some protection against rising interest rates. Since the interest payments on these bonds adjust periodically, they tend to have lower price fluctuations compared to fixed‑rate bonds.

This ETF may appeal to investors who are concerned about the impact of rising interest rates on their fixed‑income investments. It could be suitable for those looking for income with lower interest rate risk, as the floating rate feature helps maintain stability in a changing interest rate environment. This makes it a potentially attractive option for conservative investors who want to balance risk and return in their portfolios.

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.