SPDR Bloomberg Investment Grade Floating Rate ETF

FLRN tracks an index of USD-denominated, investment-grade floating rate notes. Securities must have between 1 month and 5 years until maturity.

The thesis argues that FLRN, a floating rate ETF, is likely to underperform in a falling interest rate environment. The thesis highlights the strong historical performance of FLRN, the anticipated Fed rate cuts, and the potential negative impact of falling rates on FLRN's floating rate exposure. While some market participants are pricing a 50 bps September 2024 Fed cut, our base case predicts only 25 bps, with cuts at each Fed meeting after.

FLRN: What Is Next For This Floating Rate Fund (Rating Downgrade)

FLRN invests in floating rate investment-grade bonds, resulting in a stable share price and low volatility. The fund currently offers a 5.9% dividend yield, making it a buy for short-term or risk-averse investors. FLRN's performance track-record is reasonably good, with prospective long-term returns in the 2.5% - 4.0% range depending on Fed policy.

FLRN: Simple Investment-Grade Floating Rate ETF, Good 5.9% Yield

SPD Bloomberg Investment Grade Floating Rate ETF is a fixed-income ETF that holds floating rate investment grade bonds. The ETF offers a spread pick-up over treasuries with a 6.06% 30-day SEC yield. FLRN has exhibited a steady performance and a low duration, providing a total return of nearly 6% in 2023 with a modest -2.5% drawdown.

FLRN: Floating Rate Investment Grade Bonds, 6.06% Yield

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Hello, VettaFi Voices! The Wall Street Journal mentioned today that the 10-year Treasury yield is the highest it's been since 2007 as we head into another earnings season.

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Portfolio managers and investors are seeking alternatives to the traditional 60/40 portfolio due to more stock-bond correlations and abysmal performance in 2022. Floating rate debt offers less risk than equities, with equity-like returns and lacks duration risk. Investors and portfolio managers should consider replacing their equity allocation with floating-rate debt.

FLRN: Equity-Like Returns Without The Same Risks

For investors seeking momentum, SPDR Bloomberg Investment Grade Floating Rate ETF FLRN is probably on radar. The fund just hit a 52-week high and is up 3.57% from its 52-week low price of $29.67/share.

Floating Rate Bond ETF (FLRN) Hits New 52-Week High

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Fixed-income investors looking for interest rate cuts from the Federal Reserve are still waiting, but that hasn't stopped low-rated bonds from posting strong gains in 2023. Bond investors hoping for encouraging signals from the Federal Reserve that its policy of raising interest rates was ending received mixed news yesterday.

Bank Loans And Junk Bonds Are Having A Good Year

FLRN invests in investment-grade floating rate bonds. The fund has very little in interest rate risk and credit risk and sports a 5.8% SEC yield / forward yield. An overview of the fund follows.

FLRN: Simple Investment-Grade Floating Rate ETF, 5.8% SEC Yield, Low Interest Rate Risk

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Floating rate securities offer investors strong, above-average yields with little in interest rate risk. There are several ETFs focusing on these securities. Three stand out, and offer strong investment opportunities for income investors.

3 Floating Rate ETFs For Income Investors And Retirees

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It's no secret that we are currently in a high interest rate environment. The Federal Funds rate, the benchmark rate in the U.S. set by the Federal Open Market Committee (FOMC), currently sits between the range of 5.00% and 5.25%.

Three Ways to Take Advantage of High Interest Rates

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Unlike fixed-coupon bonds, floating rate ETFs do not lose value when the rates go up, making the bonds ideal for protecting investors against capital erosion in a rising rate environment.

Floating Rate ETFs Hitting New Highs

SPDR® Blmbg Inv Grd Flt Rt ETF (FLRN) looks simple and attractive at first glance. In this era of rising rates, why not own an ETF whose holdings are bonds with rates that rise with rising interest rates?

FLRN: This Floater ETF Looks Decent, Unless There's A Credit Crisis

Investors seeking to prepare for higher rates could flock to the floating rate bond ETFs.

Floating Rate ETFs to Manage Higher Rates

Floating Rate ETFs to Bet on Rate Hike

Investment-grade floating rate notes are in high demand as fixed income traders try to get ahead of the Federal Reserve's interest rate hikes. Investors can also diversify their bond portfolios with exchange traded funds that specifically focus on this market segment.

Fixed Income Investors Should Look Into Floating Rate Bond ETFs

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Here are a number of strategies that could prove extremely beneficial for ETF investors in a rising rate environment.

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With less than four weeks left to the trading year, TIPS are on track to capture the lead for US bond-market performance in 2021, based on a set of ETFs through Dec. 6's close. Short-term Treasury Inflation Protected Securities are currently in first place via iShares 0-5 Year TIPS Bond.

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Investors seeking to prepare for higher rates could flock to the bonds with yields that track broader interest rates ??? floating rate bonds.

Bet on Floating Rate ETFs As Yields Surge

Unlike fixed coupon bonds, these do not lose value when the rates go up, making the bonds ideal for protecting investors against capital erosion in a rising rate environment.

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The bond market is not offering much incremental yield for increasing interest rate risk, therefore staying short makes sense.

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The Federal Reserve???s policymaking body released minutes of its Jul 28-29 meeting on Aug 19.

News for SPDR Bloomberg Investment Grade Floating Rate ETF ETF (FLRN)