A sound investment process and strong management team underpin iShares Treasury Floating Rate Bond ETF's Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in corporate bonds and A rated bonds compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above 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

iShares Treasury Floating Rate Bond 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 index on a risk-adjusted basis over the long term. The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Respectable risk-adjusted performance also influences the rating. 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. 

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

The investment seeks to track the investment results of the Bloomberg U.S. Treasury Floating Rate Index is composed of U.S. Treasury floating rate bonds.  The fund will invest at least 80% of its assets in the component securities of the underlying index and will invest at least 90% of its assets in U.S. Treasury securities that BFA believes will help the fund track the underlying index. The underlying index is a market capitalization-weighted index that measures the performance of floating rate public obligations of the U.S. Treasury.  

 This strategy has a 5.1% 12-month yield, higher than its average peer's 4.8%. Plus, its 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return) sits at 5.4%. While a higher yield may deliver more income, it also tends 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 has a higher average surveyed credit quality of AA, compared with the category average of A, and it holds no non-investment-grade assets, despite the average peers' 3%. Strategies that take on less credit risk can often weather more-adverse market conditions. 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 0.0-year duration, is expected to gain 0.0% 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

iShares Treasury Floating Rate Bond ETF's strong team drives the strategy's Above Average People Pillar rating. There are two managers listed on the fund: Karen Uyehara, James Mauro. Experience on the team is abundant, with 14 years of average portfolio management experience. Together, they manage a total of 114 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.  

 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.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Treasury Floating Rate Bond ETF

The iShares Treasury Floating Rate Bond ETF seeks to track the investment results of an index composed of U.S. Treasury floating rate bonds.

The fund tracks a market value-weighted index of investment grade US Treasury floating rate bonds.

Invesco Senior Loan ETF

Fidelity Low Duration Bond Factor ETF

iShares Floating Rate Bond ETF

JPMorgan Ultra-Short Income ETF

Invesco Global Short Term High Yield Bond ETF

ProShares UltraShort 7-10 Year Treasury

Global X Interest Rate Hedge ETF

ProShares UltraShort Utilities

ProShares UltraShort Real Estate

ProShares UltraShort 20+ Year Treasury

Direxion Daily 20+ Year Treasury Bear 3X Shares

Federal Reserve Chair Jerome Powell's recent remarks indicate a delay in rate cuts.

Fed Rhetoric Turns Hawkish: ETF Strategies to Play Rising Yields

Virtus Seix Senior Loan ETF

Stocks slumped to start Q2 as an interest rate cut by the Fed may come later than anticipated before. Investors can rely on these ETF strategies to play rising yields.

ETF Strategies to Play Rising Yields

Blackrock Flexible Income ETF

iShares MSCI USA ESG Optimized ETF

Grayscale Bitcoin Trust

iShares Bitcoin Trust

iShares Core Total USD Bond Market ETF

iShares Core S&P 500 ETF

iShares S&P 500 Growth ETF

iShares National Muni Bond ETF

Invesco National AMT-Free Municipal Bond ETF

iShares MSCI USA Quality Factor ETF

SPDR S&P 500 ETF Trust

U.S. Weekly FundFlows Insight Report: Equity ETFs Attract Largest Weekly Net Inflows Since Dec. 20, 2023 For Fund Flows Week

TFLO invests in floating rate treasury notes, offering slightly higher yields and returns compared to t-bills. TFLO has extremely low credit risk as it invests in treasuries backed by the full faith and credit of the U.S. Federal Government.

TFLO: Simple Floating Rate Treasury ETF, Slightly Stronger Than T-Bills

iShares S&P 500 Value ETF

iShares S&P 100 ETF

US Treasury 3 Month Bill Etf

At the close of LSEG Lipper's fund-flows week, U.S. broad-based equity indices reported mixed to negative returns.

U.S. Weekly FundFlows Insight Report: Short/Intermediate Government And Treasury ETFs Post Largest Outflow On Record

WisdomTree Bloomberg Floating Rate Treasury Fund

iShares Treasury Floating Rate Bond ETF and WisdomTree Floating Rate Treasury Fund ETF are stable ETFs that pay monthly dividends sourced from floating rate U.S. treasuries. These funds are essential for traders to be aware of as they offer a way to earn compound interest on cash positions. TFLO and USFR provide stable collateral for derivatives traders and can be used as a way to wait for a market pullback or raise cash before a crash.

TFLO And USFR: Derivatives Trader Essentials

The iShares Treasury Floating Rate Bond ETF has provided solid returns for investors due to higher coupons tied to rising short-term interest rates. Investors should be cautious of potential rate cuts from the Fed in 2024 if inflation continues to moderate. TFLO offers exposure to floating rate treasury notes and has a low expense ratio, but investors may want to consider switching to 2-year notes ahead of potential rate cuts.

TFLO: Moderating CPI Increases Chance Of Rate Cuts In 2024

The iShares Treasury Floating Rate Bond ETF currently has a 30-day SEC yield of 5.3%, which is high relative to inflation expectations and yields on risky bonds and stocks. The TFLO tracks US Treasury floating rate bonds, which have coupon payments that periodically reset based on short-term interest rates. Despite high yields on short-term bonds, investors are still favoring risk assets, making the TFLO's yield even more impressive compared to stocks and corporate bonds.

TFLO: Betting Against A Fed Miracle

For investors seeking momentum, iShares Treasury Floating Rate Bond ETF TFLO is probably on radar. The fund just hit a 52-week high and is up 0.9% from its 52-week low price of $50.28/share.

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

Ionic Inflation Protection ETF

Simplify Interest Rate Hedge ETF

FolioBeyond Rising Rates ETF

Federal Reserve Chair Jerome Powell emphasized the need for continued vigilance in the battle against inflation in a meeting in Jackson Hole.

Fed Warns of More Rate Hikes to Tame Inflation: ETFs to Buy

Alcoa

SPDR Bloomberg 1-3 Month T-Bill ETF

Discover

iShares Russell 2000 ETF

Invesco QQQ

Proshares Short 20+ Year Treasury

ProShares Short 7-10 Year Treasury

China's disappointing economic data and a surprise rate cut from the Central Bank dampen market sentiment. Long-term resistance on the 10-year U.S. Treasury yield at 4.30% is a key level to watch.

Wall Street's Freaky Season, Trading Updates And China's Disappointing Data

iShares Core U.S. Aggregate Bond ETF

iShares MSCI EAFE Value ETF

iShares Core S&P Mid-Cap ETF

Invesco S&P 500 Equal Weight ETF

iShares 20+ Year Treasury Bond ETF

Vanguard Intermediate-Term Treasury ETF

U.S. stocks had an upbeat July. Investors poured money into the S&P 500 ETFs.

ETF Asset Reports of July: S&P 500 Wins

iShares Treasury Floating Rate Bond ETF is a minimal-duration exchange-traded fund meant to track rates in the U.S. It's a Treasury-based instrument that does not have meaningful credit risk, some would say none at all. While it also yields well according to the curve of short term rates, it also will respond well to rates staying higher for longer, which is a concern of ours.

TFLO: We're Arriving At Peaks, But Smart Money Thinks High LT Rates

Vanguard Long-Term Treasury ETF

Vanguard S&P 500 ETF

Overall, ETFs pulled in $5.1 billion in capital last week, taking year-to-date inflows to $257.3 billion.

5 ETFs That Pulled in Maximum Capital Last Week

iShares 0-3 Month Treasury Bond ETF

iShares Short Treasury Bond ETF

By Karen Veraa, CFA As rates have risen in 2022, short-term Treasury yields are at the highest levels in more than 15 years. With attractive yields available in short-term bond markets, investors looking to step up from idle cash may consider using ETFs to add income and keep pace with inflation.

Get More for Your Money with Short-Term Bond ETFs

Convergence Long/short Equity ETF

RPAR Risk Parity ETF

US Treasury 2 Year Note ETF

Nationwide Risk-Managed Income ETF

We took a “bucket list” trip to Africa to see the “Great Migration,” the annual wildlife journey. It prompted several market outlook ideas. I offer views on several ETFs for investors to consider researching including RPAR, UTWO, and NUSI, each embodying the traits of different animals. My bottom-line outlook and view: Today's markets are different. Be proactive, consider multiple scenarios, be ready for each one, and consider the potential for "tail risk events."

I Came Back From A Trip To Africa With These 3 Timely ETF Ideas

SPDR Dow Jones Industrial Average ETF

ProShares Short Real Estate

iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

Matthew Tuttle and Rob Isbitts dissect myths and facts in today's stock market. S&P 500, Dow, and Nasdaq - price is all that matters.

Busting Today's Market Myths With Matthew Tuttle And Rob Isbitts

I have been reducing my exposure to interest rate risks over recent weeks as sticky CPI and a US equity breakout suggest rate cuts are unlikely. The iShares Treasury Floating Rate Bond ETF offers investors a way to benefit from high-interest rates while reducing the risk of a reversal in rate cut expectations.

TFLO: Sticky CPI And Equity Rally Suggest Rate Cuts Unlikely Anytime Soon

Cash has not kept pace with equities in 2023. The equity risk premium is very rich, the lowest is over a year.

TFLO: Cash Is Not Trash

Assurant

American Tower

Avient Corp

Crown Castle International

Enbridge

EOG Resources

East West Bancorp

Honeywell

Helmerich & Payne

Intercontinental Exchange

Nordson

Suncor Energy

Sun Communities

T. Rowe Price Group

Tyson Foods

WestRock

We have not removed or added any companies to the list since the last update mid-April. We have seen Telecom REITs and oil names become more attractively priced in the last 2-4 weeks.

Undervalued Dividend Stocks Watchlist - May 8th Update

BlackRock Ultra Short-Term Bond ETF

BlackRock's head of iShares U.S. wealth advisory Michael Lane is frequently asked by clients about how to respond to the confluence of two big issues happening in the ETF industry: consolidation of the financial advisor business and the model marketplace.

NYSE's ETF Leaders: BlackRock's Michael Lane

Floating Rate Notes now offer 5% or more in yield. Increased inflation from global economic activity, especially from China, is pressuring rates higher.

TFLO: Why It's My Largest Position

The iShares Treasury Floating Rate Bond ETF is a fund that falls in the cash parking vehicles sub-category. TFLO is a rare instrument because it aggregates Treasury Floating Rate Notes, an often unknown corner of the Treasury market.

TFLO: Rare 4.6% Floating Rate Treasury Yield

iShares US Infrastructure ETF

Engine No. 1 Transform 500 ETF

Elisabeth Kashner, director of global fund research & analytics for FactSet, discusses the latest trends in ETFs.

News for iShares Treasury Floating Rate Bond ETF ETF (TFLO)