Floating Rate ETFs Are Trending - Here's Why

Related: Pimco Says Recession Possible in Next Three to Five Years

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.

Floaters have been popular with investors this year. For its part, FLOT has seen year-to-date inflows of $3.78 billion, a total surpassed by just two other bond ETFs and seven ETFs overall.

FLOT charges 0.20% per year, or $20 on a $10,000 investment.

For more on the bond market, visit our Fixed Income Channel.