SPDR Barclays Capital Investment Grade Floating Rate ETF (NYSEARCA:FLRN)
FLRN seeks to replicate the Barclays Capital U.S. Dollar Floating Rate Note less than 5 Years Index. The Index consists of notes that pay a variable coupon based on 3-month LIBOR plus a fixed spread. (read: Floating Rate Bond ETF Investing 101)
The Index measures the performance of floating rate notes which are U.S. dollar denominated and uses the 3-month LIBOR as the reference rate.
The ETF was launched in November 2011 and since then it has managed to attract assets worth $351.5 million. The weighted average maturity and adjusted duration of the ETF are 1.76 years and 0.12 years, respectively.
The product currently holds 342 securities and charges just 15 basis points in annual fees. It has a dividend yield of 0.78%.
Market Vectors Investment Grade Floating Rate ETF (NYSEARCA:FLTR)
FLTR tracks the Market Vectors U.S. Investment Grade Floating Rate Index which comprises U.S. dollar denominated investment rate floating rate bonds that are issued by corporate issuers.
The product, debuted in April 2011, has attracted $97.3 million in AUM so far. It charges investors 19 bps in annual fees.
The product currently has 163 holdings, with years to maturity of 2.7 years and average modified duration of 2.63 years. Therefore, it is more sensitive to interest rate movements than most of its counterparts. The ETF currently sports a yield of 0.66%.
This article is brought to you courtesy of Eric Dutram.