“With short-term interest rates near zero, the potential for a rising interest rate environment is a concern for many investors in long-term Treasury bonds,” Ross added. [State Street Lists Floating-Rate Bond ETF]
Still, Zacks points out that if rates stay low, these bonds could underperform their fixed-rate counterparts, and that the ETFs have heavy concentrations in the financial sector.
Market Vectors Investment Grade Floating Rate Bond Fund
