iShares Treasury Floating Rate Bond ETF (TFLO)

iShares Treasury Floating Rate Bond ETF (FLOT)

Profile:

FLOT is an ETF that invests in U.S. Treasury floating-rate notes and bonds. It seeks to provide investors with a high level of current income and capital appreciation.

Objective:

The primary investment objective of FLOT is to track the performance of the Bloomberg Barclays U.S. Treasury Floating Rate Bond Index. This index measures the performance of U.S. Treasury floating-rate notes and bonds with maturities of less than three years.

Issuer:

FLOT is issued by BlackRock, Inc. (BLK), the world's largest asset manager. BlackRock has a strong reputation and a long track record of managing investment funds.

Market Share:

FLOT is the largest ETF in its sector, with a market share of over 70%.

Total Net Assets:

As of October 26, 2023, FLOT has total net assets of over $65 billion.

Moat:

FLOT has several competitive advantages, including its large size, low expense ratio, and efficient tracking of its benchmark index.

Financial Performance:

Over the past three years, FLOT has returned 3.6%, which is slightly above its benchmark index.

Market Dynamics:

The performance of FLOT is affected by several factors, including interest rates, inflation, and the overall health of the U.S. economy.

Competitors:

FLOT's main competitors are the Vanguard Short-Term Treasury ETF (VGSH) and the SPDR Bloomberg Barclays Short Term Treasury ETF (SHV).

Expense Ratio:

FLOT has an expense ratio of 0.15%.

Investment Approach and Strategy:

FLOT tracks the Bloomberg Barclays U.S. Treasury Floating Rate Bond Index. It invests in a diversified portfolio of U.S. Treasury floating-rate notes and bonds with maturities of less than three years.

Key Points:

• FLOT is a low-cost, efficient way to invest in U.S. Treasury floating-rate notes and bonds.
• FLOT is well-suited for investors seeking current income and capital appreciation.

Risks:

• Interest rate risk: FLOT is subject to interest rate risk, meaning that its value will decline if interest rates rise.
• Inflation risk: Inflation can erode the purchasing power of FLOT's returns.

Who Should Consider Investing:

FLOT is a good option for investors who are looking for:

• A safe and secure investment
• A source of current income
• A hedge against inflation

Evaluation of FLOT's fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 8.5

FLOT receives a high rating based on its strong financial performance, low expense ratio, and large market share. It also benefits from the strong reputation and experience of its issuer, BlackRock. However, FLOT is exposed to interest rate and inflation risks, which investors should be aware of.

Resources:

• iShares Treasury Floating Rate Bond ETF (FLOT): https://www.ishares.com/us/products/239642/ishares-treasury-floating-rate-bond-etf
• BlackRock: https://www.blackrock.com/
• Bloomberg Barclays U.S. Treasury Floating Rate Bond Index: https://www.bloomberg.com/professional/product/bloomberg-barclays-u-s-treasury-floating-rate-bond-index/

Disclaimers:

The information provided above is for general knowledge and educational purposes only, and does not constitute investment advice. Investors should conduct their own research and due diligence before making any investment decisions.