FLOT

The iShares Floating Rate Bond ETF (FLOT) is an exchange-traded fund designed to track the performance of short-term U.S. corporate floating-rate bonds. The ETF is managed by BlackRock through its iShares division and trades under the ticker FLOT on the Cboe BZX Exchange.

Classified as a floating-rate corporate bond ETF, the fund seeks to reflect, before fees and expenses, the performance of the Bloomberg US Floating Rate Note < 5 Years Index. The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. 

The benchmark includes investment-grade U.S. corporate floating-rate notes with short-term maturities, whose coupon payments are periodically adjusted according to market reference rates.

Diversification and sector exposure

FLOT provides exposure primarily associated with:

• U.S. corporate bonds.
• Floating-rate notes.
• Short-term fixed income.
• Investment-grade issuers.
• Financial sector.
• Industrial companies.
• U.S. corporate credit.
• Short-term U.S. interest rates.

The ETF’s performance is particularly sensitive to corporate credit conditions and changes in U.S. monetary policy. Because the bonds’ coupons adjust according to floating reference rates, the fund generally exhibits lower sensitivity to long-term interest-rate movements compared to traditional fixed-rate bond ETFs.

Changes in credit spreads, fixed-income market liquidity conditions, and expectations surrounding Federal Reserve interest rates may also directly affect the ETF’s behavior.

Structure and costs

FLOT shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. FLOT may distribute income derived from interest payments generated by the corporate bonds held in the portfolio.

Because the ETF maintains exposure to floating-rate corporate securities, its behavior may reflect changes in short-term interest rates, credit spreads, and overall conditions within the U.S. fixed-income market.

History and evolution of the ETF

The iShares Floating Rate Bond ETF was launched in 2011 during a period marked by increased demand for fixed-income instruments with lower sensitivity to rising interest rates following the global financial crisis.

Since inception, the fund has reflected movements associated with the U.S. short-term corporate credit market, including changes in benchmark interest rates, monetary conditions, and credit spreads.

In recent years, FLOT has reflected Federal Reserve tightening cycles, fluctuations in inflation expectations and short-term interest rates, as well as changing liquidity conditions within the U.S. corporate credit market.

Additional Information

iShares Floating Rate Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $9.56 Billions.

Over the past 12 months, iShares Floating Rate Bond ETF recorded a return of 4.86%, with its price trading between $50.72 and $51.09 during the same period.

The ETF is traded under the ticker FLOT.