The bottom line is that despite the differences, both of these segments of the fixed income market as it pertains to ETFs a) did not exist just two years ago in ETF form and b) clearly have broad appeal to portfolio managers that are already using ETFs as part of their overall fixed income allocations.
From a daily volume standpoint, ADV is currently about 485,000 shares, with that number steadily growing thanks to trading days like the one from earlier this week. However, like many “niche” products, trading volume can be “hit or miss” on any given trading day, but that does not mean that one cannot put a meaningful amount of money to work in the product and get sensible executions, given the willingness to make a few calls.
iShares Floating Rate Note ETF
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].
Story updated to correct expense ratio for BKLN.