The iShares $ Floating Rate Bond UCITS ETF USD (Acc) (FLOA) is an Ireland-domiciled fixed-income ETF managed by BlackRock and traded on the London Stock Exchange.

The fund seeks to track the performance of the Bloomberg US Floating Rate Note < 5 Years Index, a benchmark composed of U.S. dollar-denominated, investment-grade floating-rate securities with remaining maturities of less than five years.

FLOA provides exposure to short-term U.S. dollar-denominated floating-rate securities. The ETF follows a passive investment strategy and uses physical replication through a sampling methodology to track its benchmark. It operates under the UCITS framework and follows an accumulating income policy.

The Bloomberg US Floating Rate Note < 5 Years Index includes securities with variable coupon rates, typically based on a reference rate plus a fixed spread. 

Eligible securities have remaining maturities between one month and five years, must meet investment-grade requirements, and are subject to minimum outstanding face-value criteria. The benchmark is market-capitalization weighted and updated monthly.

Composition / Exposure Profile

FLOA primarily provides exposure to:

• U.S. dollar-denominated floating-rate securities.

• Investment-grade corporate debt.

• Securities issued by financial institutions.

• Debt issued by supranational and other eligible institutions.

• Fixed-income securities with remaining maturities of less than five years.

Although the securities are denominated in U.S. dollars, issuers are not limited to the United States. The portfolio can include both U.S. and international institutions, providing exposure to the global U.S. dollar-denominated credit market.

Because floating-rate coupons reset periodically based on their respective reference rates, these securities generally have lower interest-rate sensitivity than fixed-rate bonds with similar characteristics.

Structure and Costs

FLOA trades in U.S. dollars on the London Stock Exchange. Both the fund's base currency and share class currency are the U.S. dollar. The same strategy is also available through other share classes, including distributing and currency-hedged versions.

The ETF has a total expense ratio (TER) of 0.10% per year and uses a physical structure with a sampling methodology. It is domiciled in Ireland, operates under the UCITS framework, and is part of iShares II plc.

FLOA is an accumulating share class, meaning interest and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The iShares $ Floating Rate Bond UCITS ETF USD (Acc) (FLOA) was launched in 2018 by BlackRock to provide exposure to short-term, U.S. dollar-denominated investment-grade floating-rate securities. Since its launch, the fund has maintained a passive strategy linked to the Bloomberg US Floating Rate Note < 5 Years Index, using a physical portfolio of securities to track its benchmark.

Throughout its history, the fund's performance has reflected conditions in the U.S. dollar-denominated credit market and changes in the reference rates used to determine floating-rate coupon payments.

Additional Information

iShares $ Floating Rate Bond UCITS ETF USD (Acc) (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $2.81 billion.

Over the past 12 months, iShares $ Floating Rate Bond UCITS ETF USD (Acc) recorded a return of 4.40%, with its price trading between $6.37 and $6.66 during the same period.

The ETF is traded under the ticker FLOA.