iShares Floating Rate Bond ETF

The iShares Floating Rate Bond ETF is a type of exchange-traded fund that provides investors with exposure to a portfolio of U.S. dollar-denominated, investment-grade floating rate bonds. These bonds are characterized by their interest payments that adjust periodically based on the fluctuations in benchmark interest rates, typically the London Interbank Offered Rate (LIBOR). The primary purpose of this ETF is to offer a measure of protection against interest rate risks, as the floating rate feature can help mitigate the impact of rising interest rates on bond prices. The ETF targets those sectors within the fixed-income market where floating rate bonds are prevalent, such as corporate debt and government-related obligations. By investing in the iShares Floating Rate Bond ETF, market participants can achieve diversification within their bond holdings, given the ETF's exposure to multiple issuers. This ETF plays a significant role for those looking to manage interest rate risk while still maintaining a bond allocation in their portfolios. It is generally beneficial in times of uncertain or increasing interest rate environments, appealing to those who seek income generation with potentially lower volatility compared to fixed-rate bonds.