iShares Floating Rate Note Fund (FLOT) Launched

BlackRock (BLK) introduced the iShares Floating Rate Note Fund (FLOT) on June 17, 2011.  The new ETF seeks investment results that correspond generally to the price and yield performance of the Barclays Capital US Floating Rate Note < 5 Years Index. Floating rate notes have their interest rates adjusted periodically.  This makes them less price sensitive to interest rate changes while potentially being able to capture and distribute higher yields in a rising interest rate environment.  Investors wanting a better understanding of how these securities work should read BlackRock’s excellent Mechanics of the iShares Floating Rate Note Fund (FLOT) (pdf). The underlying Barclays Capital US Floating Rate Note < 5 Years Index consists of 314 constituents with an average . . . → Read More: iShares Floating Rate Note Fund (FLOT) Launched