VanEck Australian Floating Rate ETF
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VanEck Australian Floating Rate ETF (FLOT, formerly VanEck Vectors Australian Floating Rate ETF) invests in a diversified portfolio of Australian dollar denominated floating rate bonds with the aim of providing investment returns (before management costs) that closely track the returns of the Bloomberg Aus Bond Credit FRN 0+ Yr Index (BAFRN0).
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What is the VanEck Australian Floating Rate ETF (FLOT)?
Floating Rate Notes (FRNs) are a type of bond designed to move with interest rates. FRNs pay interest (known as “coupons”) that vary according to short-term interest rates, therefore providing reduced interest rate risk, known as “duration” risk.
FLOT ETF gives you a diversified portfolio of FRNs that are of investment grade quality. FLOT includes bonds issued by corporate entities such as the Big 4 Aussie banks, foreign banks, other lending institutions and Australian listed property trusts (A-REITs).
What are the benefits of the FLOT ETF?
Find the main benefits of the FLOT ETF here:
Concerns about rising rates have prompted many investors to consider moving out of longer-duration bonds.
Conservative investors often invest in short term bonds for exposure to investment grade credit.
For an elevated risk FRNs typically offer a higher yield relative to cash and term deposits.
Does FLOT pay dividends?
Yes, the FLOT ETF pays dividends monthly.
What are the risks of the VanEck Australia Floating Rate ETF?
An investment in the FLOT ETF carries risks associated with: bond markets generally, interest rate movements, issuer default, credit ratings, fund operations, liquidity and tracking an index.
Find out more about the VanEck Australian Floating Rate ETF.
To do so follow these steps:
- Sign up in minutes, all you need is some I.D.
- Choose Stake AUS
- Deposit directly into your Stake wallet and you're ready to invest in FLOT
This does not constitute financial advice. You should do your own research before making an investment decision. Past performance is not a reliable indication of future performance. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.