About the FLOT ETF
FLOT ETF is managed by VanEck and is designed to give investors exposure to a diversified portfolio of Floating Rate Notes (FRNs) which represent the Bloomberg AusBond Credit FRN 0+ Yr Index.
The Bloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0) is a market value weighted index comprising floating rate bonds that are of investment grade quality. The index typically includes bonds issued by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and Australian listed property trusts (A-REITs).
FLOT ETF's investments (FRNs) pay coupons (interest) that varies with short-term interest rates.
FLOT ETF Performance Review
Data Current To: 31/08/2021
Our review of FLOT ETF
A portfolio of senior, investment grade corporate bonds with a very high credit quality
More than 92% of bonds are rated in the A range or above
The ETF consists of 100% floating rate bonds, there is a very small exposure to interest rate risk
Must have a minimum outstanding face value of $100 million and minimum one month until maturity
Australian dollar denominated securities but also invests in financial bonds from other countries
What we like about the FLOT ETF
Good diversification with around 200 securities
Short average term to maturity of around 2 years
Things to be aware of about the FLOT ETF
Concentrated, with around 95% of securities in the financial sector
Very low yield to maturity of 0.28% as at 15 January 2021
Difficult to judge the credit quality of the portfolio with no split by credit rating, nor average credit rating provided
FLOT ETF Investment Strategy
FLOT invests in a diversified portfolio of Australian dollar denominated Floating Rate Notes with the aim of providing investment returns (before fees and costs) that closely track the returns of the Bloomberg AusBond Credit FRN 0+ Yr Index
FLOT ETF Share Price
What does the FLOT ETF Invest In?
FLOT is a Corporate Bond ETF.
The FLOT ETF holds about 175 different FRN investments including securities issued by Westpac Banking Corporation, Commonwealth Bank of Australia and Westpac Banking Corp. Over 95% of FLOT ETF's are in the banking sector and more than 60% are in Australia. Most investments are rated AA or A with less than 10% rated AAA.
FLOT ETF Credit Quality
The average credit quality of the FLOT ETF is A+.
A detailed breakdown of the credit quality is expressed below.
FLOT Frequently Asked Questions
What index does the FLOT ETF aim to replicate?
How often does FLOT ETF pay distributions?
When did the FLOT ETF start?
What are the net assets of the FLOT ETF?
What are the number of holdings in the FLOT ETF?
What are the management fees for the FLOT ETF?
How can I invest in the FLOT ETF?
Does the FLOT ETF have a minimum investment amount?
Are there any performance fees associated with the FLOT ETF?
About The Issuer Of The FLOT ETF: VanEck
Other VanEck ETFs
- VanEck SUBD ETF (ASX:SUBD)
- VanEck EBND ETF (ASX:EBND)
- VanEck FLOT ETF (ASX:FLOT)
- VanEck PLUS ETF (ASX:PLUS)