VanEck IG Floating Rate ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in corporate bonds and A rated bonds compared with category peers. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

VanEck IG Floating Rate ETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The most substantial contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Strong risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. Lastly, the process is limited by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to replicate as closely as possible, before fees and expenses, and the price and yield performance of the MVIS® US Investment Grade Floating Rate Index (the "Floating Rate Index").  The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index is comprised of U.S. dollar-denominated floating rate notes issued by corporate entities or similar commercial entities that are public reporting companies in the United States and rated investment grade. The fund is non-diversified.  

 This strategy has a 6.2% 12-month yield, higher than its average peer's 4.8%. In addition, it has a 5.9% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). Higher yields tend to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated A. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with a -0.1-year duration, is expected to gain -0.1% of its net asset value if interest rates drop by 1 percentage point, and vice versa. This makes the fund much less sensitive to interest rate fluctuations than the broader bond market.

Above Average

Process

VanEck’s team is good but unexceptional, earning the strategy an Average People Pillar rating. The fund takes a solo manager approach, with Francis Rodilosso as the only listed manager at the helm, who brings 20 years of portfolio management experience to the table. They manage a total of 12 strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk.However, they have built history managing the strategy, it has not changed hands within the last five years. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Investment Grade Floating Rate ETF

FLTR tracks a market-value-weighted index of US dollar-denominated, investment-grade floating-rate notes issued by corporate entities.

VanEck IG Floating Rate ETF offers exposure to investment-grade floating rate note investments. The ETF provides investors with protection from a higher for longer environment. FLTR provides investors with an attractive yield that is paid monthly.

FLTR: Higher For Longer And Reaching For Quality

Disney

DraftKings

DraftKings leads in U.S. online sports betting and saw users grow by 1.1 million in 2023. FanDuel parent Flutter Entertainment leads in the U.K., Ireland, Australia, and Italy.

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Carnival

MGM Resorts

Sportradar Group AG

Sports betting has grown rapidly but could still have plenty of long-term potential. Flutter Entertainment and DraftKings could be great plays on online betting.

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VanEck IG Floating Rate ETF aims to match the performance of the MVIS US Investment Grade Floating Rate Index. Floating rate bonds offer dynamic interest income tied to benchmark rates, providing a cushion against inflation and volatility. FLTR is well-diversified with high-quality holdings, making it an attractive choice for investors seeking steady returns.

FLTR: Good In Case Higher For Longer Remains

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Yields have reset higher across fixed income markets, leaving bonds well positioned in a range of different economic and interest rate scenarios in 2024. Introduction to Income Investing Income investing is a strategy that aims to generate a steady stream of income from investments, typically through interest payments or dividends.

Income Investing Playbook 2024: Navigating the New Interest Rate Regime

Following a tumultuous 2022, this year has been better, though not entirely sanguine for fixed income investors. 2024 is right around the corner, and expectations of rate cuts by the Federal Reserve are rising.

How to Prepare for 2024 Fixed Income Opportunities

FLTR is an ETF that seeks to provide exposure to floating rate investment grade corporate bonds. FLTR carries a reasonably low management fee but includes high exposure to the financials sector. While FLTR is a reasonable floating rate play my preferred floating rate investment is AAA CLO ETFs which carry higher yields and safer assets.

FLTR: A Solid ETF But Not My Favorite Floating Rate Play

Flutter Entertainment FLTR, -3.39%, the gambling company formerly known as Paddy Power, struck a maiden profit at its U.S. business led by FanDuel in the first half of the year, highlighting its motivation for a Wall Street listing.

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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

WisdomTree Bloomberg Floating Rate Treasury Fund

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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

VanEck IG Floating Rate ETF is a short-dated, floating rate fund. The fund is composed of investment grade bonds solely, being overweight 'A' credits.

FLTR: A Great Way To Earn 5.35% This Year Without Headaches

As we consider the current market environment, investors can use collateralized loan obligations and floating-rate notes related ETF strategies investments to diversify their investment portfolios today.

2 ETF Strategies for Income Investors in a Rising Rate Environment

Looking for a way to diversify your fixed-income portfolio toolset? Collateralized loan obligations, or CLOs, could provide attractive yields relative to similarly-rated bonds and loans.

Rise Above Rising Rates with CLOs and FRNs

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

Guide to Floating Rate Bond ETF Investing

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

Floating Rate ETFs to Manage Higher Rates

Football season is officially underway and this year is expected to be huge for sports betting stocks, particularly for wagers placed online. Since 2018, a total of 30 U.S. states have legalized sports betting, including 21 states that now allow online betting.

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It's been a wild market for investors. But fund issuer VanEck thinks it's providing investors with the best ETFs and mutual funds to navigate the volatility.

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FuboTV

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As more states legalize sports betting, the market is growing quickly.

Investing in Sports Betting Stocks

Not much is working in the bond market this year, and with the Federal Reserve planning more, potentially larger rate hikes in a bid to quash inflation, things could get worse before they get better. In other words, less bad is carrying the day in many corners of the bond market, including floating-rate notes.

Floating-Rate Notes Have Risks, Rewards

Floating Rate ETFs to Bet on Rate Hike

The Federal Reserve raised interest rates by 25 basis points on Wednesday, and some experts believe another six or seven rate hikes could be coming over the course of this year. That could be a sign that it's not too late for investors to consider some of the fixed income strategies that benefit from Fed [.

Good Time to Consider Floating Rate Notes ETFs

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

The Federal Reserve is poised to raise interest rates, and that cycle could commence as soon as March. In the eyes of many market observers, it's a “when” not “if” proposition, with the only lingering question being, “How many times will the central bank hike rates?

As Rates Rise, FLTR Could Be Fabulous

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

News for VanEck Investment Grade Floating Rate ETF ETF (FLTR)