Top holdings within FLOT at the moment include issues from JP Morgan, Commonwealth Bank of Australia, Goldman Sachs, and General Electric Capital Corp. to name a few, and only 15% of the overall portfolio is invested across the top ten floating rate bond issues, giving the fund depth and diversification across a basket of bonds (nearly 300 in the portfolio).
Investors have clearly embraced exposure to Floating Rate Bonds via these newer ETF tools and based on the quick success that iShares, SPDRs, and Market Vectors have had in terms of raising assets here thus far, we would expect new entrants into this niche area of fixed income in time.
Perhaps some of the fund sponsors that are well known for their fixed income prowess the likes of Vanguard, PIMCO, Guggenheim, are eyeing up the possibilities of entry into this market.
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