Looking ahead, the floating rate notes will generate more interest if Treasury prices fall and yields rise further, which should play out if the Fed continues on its interest rate normalization schedule.
ETF investors have a number of fund options to gain exposure to floating rate securities, including Treasury-specific, broad investment-grade corporate debt and speculative-grade senior loans.
Floating Rate Treasury ETFs:
- iShares Treasury Floating Rate ETF (NYSEArca: TFLO)
- WisdomTree Bloomberg Floating Rate Treasury Fund (NYSEArca: USFR)
Floating Rate Bond ETFs:
- iShares Floating Rate Bond ETF (NYSEArca: FLOT)
- SPDR Barclays Investment Grade Floating Rate (NYSEArca: FLRN)
- Market Vectors Investment Grade Floating Rate (NYSEArca: FLTR)
- AdvisorShares Pacific Asset Enhanced Floating Rate Note ETF (NYSEArca: FLRT)
Senior Bank Loan ETFs:
- PowerShares Senior Loan Portfolio (NYSEArca: BKLN)
- Highland/iBoxx Senior Loan ETF (NYSEArca: SNLN)
- SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN)
- First Trust Senior Loan ETF (NasdaqGM: FTSL)
For more information on floating rates, visit our floating rate notes category.