Highlights

  • FLOT targets US dollar Investment grade floating rate bonds.
  • The published expense ratio is 0.15%.
  • The fund's distribution frequency is monthly.

iShares Floating Rate Bond ETF (Cboe BZX:FLOT) seeks exposure to US dollar investment grade floating rate bonds. With net asset value of USD 50.82 per share as of 2 November 2026, the fund reported net Assets of USD 11,622,971,847 as of 2 November 2026. Its investment approach centres on tracking the Bloomberg US Floating Rate Note < 5 Years index (USD).

Coupon Resets Distinguish the Portfolio

Floating rate bonds adjust their coupons by reference to specified rates and contractual reset schedules. This mechanism changes the relationship between market interest rates and the bond's cash flows. It can limit sensitivity to movements in benchmark rates, while leaving exposure to the issuer's financial condition. Reset terms, Credit spreads and the timing of payments remain relevant when assessing the portfolio.

Portfolio Composition and Exposure

FLOT reported 560 holdings as of 2 November 2026. This count describes the portfolio at that date and can change as securities enter or leave the fund. It does not indicate that each position carries the same weight.

The published exposure breakdown as of 2 November 2026 included Banking at 46.91% and Supranational at 19.23%. These allocations show where a meaningful part of the portfolio's exposure was concentrated. The percentages can change with market values and portfolio adjustments.

Effective duration was 0.01 years as of 2 November 2026, while weighted average Maturity was 1.85 years as of 2 November 2026. Duration indicates sensitivity to Interest Rate changes; maturity describes the timing of principal repayments. These measures address different features of a bond portfolio.

Fees and Distribution Policy

FLOT lists an expense ratio of 0.15%. This is an ongoing fund cost, rather than a charge covering every expense of buying or selling shares. Brokerage charges and the difference between buying and selling prices can add to an investor's transaction costs. Fund shares trade on Cboe BZX at market prices, which may differ from net asset value.

The stated distribution frequency is monthly. That schedule describes the timing framework for payments and does not establish a fixed amount. Distributions depend on the fund's available income and applicable distribution decisions. A cash payment also needs to be considered alongside changes in the value of the investment.

Key Insights

Falling reference rates can reduce coupon income. Credit deterioration or weaker Bond Market Liquidity can still reduce prices even when sensitivity to benchmark interest rates is limited. FLOT's floating coupons explain its rate profile, but the investment grade label and short duration do not eliminate credit risk or changes in income.