(FLRN) SPDR Bloomberg Investment - Ratings and Ratios

The SPDR® Bloomberg Investment Grade Floating Rate ETF (FLRN) is a targeted fixed-income fund designed to provide exposure to U.S. dollar-denominated, investment-grade floating rate notes. The fund invests at least 80% of its assets in securities that either directly comprise its benchmark index or exhibit economic characteristics closely aligned with those securities. This structure ensures tight tracking of the index while allowing some flexibility for the funds manager to optimize returns and manage risk.

The Bloomberg Investment Grade Floating Rate Note Index, which the fund seeks to replicate, focuses on senior, unsecured floating rate notes issued by U.S. corporations and financial institutions. These securities typically have interest rates that reset periodically based on a reference rate, such as LIBOR or SOFR, making them less sensitive to long-term interest rate fluctuations compared to fixed-rate bonds. This feature makes the ETF particularly appealing in rising interest rate environments, as investors can benefit from potentially higher yields without the duration risk associated with traditional fixed-rate bonds.

FLRNs portfolio is composed of high-quality, investment-grade securities, with issuers ranging from major banks to large corporations. The fund avoids lower-quality debt, focusing solely on instruments rated BBB- or higher by leading credit rating agencies. This emphasis on credit quality helps mitigate default risk, making the ETF a relatively conservative option within the fixed-income universe. Additionally, the ETFs ultrashort duration profile, with a typical effective duration of less than one year, further reduces its sensitivity to interest rate changes, making it an attractive choice for investors seeking stability in volatile markets.

With approximately $2.6 billion in assets under management, FLRN is a widely traded ETF listed on the NYSE ARCA. It is domiciled in the United States and is part of State Streets SPDR family of ETFs, known for their transparency and cost-efficiency. The funds focus on investment-grade floating rate notes positions it as a valuable tool for investors and fund managers looking to enhance yield, manage interest rate risk, or diversify their fixed-income allocations within a low-risk framework.