FLOT 📈 iShares Floating Rate Bond - Overview

The iShares Floating Rate Bond ETF, traded on the BATS exchange under the ticker FLOT, is designed to track the performance of a specific underlying index, focusing on floating rate bonds. To achieve this, the fund will allocate at least 80% of its assets to the component securities of the underlying index, ensuring a high level of correlation with the index's performance. Furthermore, the fund will invest a minimum of 90% of its assets in fixed income securities that are representative of the types included in the underlying index, as selected by BlackRock Fund Advisors (BFA), the fund's manager. This approach enables the fund to closely track the underlying index, providing investors with exposure to a diversified portfolio of floating rate bonds.

In terms of its structure, the iShares Floating Rate Bond ETF is an exchange-traded fund (ETF) domiciled in the United States, with the International Securities Identification Number (ISIN) US46429B6552. As an ETF, it offers investors the benefits of trading flexibility, transparency, and diversification. The fund is categorized as an ultrashort bond ETF, indicating its focus on short-term, high-liquidity bonds with floating interest rates. This type of investment can be attractive to investors seeking to manage interest rate risk or generate income in a low-yield environment. For more information, investors can visit the iShares website at http://www.ishares.com.

The underlying index that the fund tracks is designed to measure the performance of a specific segment of the floating rate bond market. By investing in a diversified portfolio of floating rate bonds, the fund aims to provide investors with a total return that closely corresponds to the performance of the underlying index. The fund's manager, BFA, uses a representative sampling strategy to select the bonds included in the fund's portfolio, ensuring that the fund's performance is highly correlated with that of the underlying index. This approach enables investors to gain exposure to a broad range of floating rate bonds, while minimizing the costs and complexities associated with direct bond investing.