Floating rate notes, like the name suggests, have a floating interest rate. Specifically, the notes’ have a so-called reset period with interest rates tied to a benchmark, such as the Fed funds, LIBOR, prime rate or U.S. Treasury bill rate.
FLTR has a 30-day SEC yield of 0.43% and a modified duration of just 0.15 years.
Market Vectors Investment Grade Floating Rate Bond ETF
ETF Trends editorial team contributed to this post.