iShares Floating Rate Bond ETF

FLOT

時価総額 $113億

Rolling coverage of the latest economic and financial news

The Fed raised rates and TBT barely flinched, which raises an uncomfortable question for anyone betting on more hikes: being right about the direction still might not make you money.

FLOT looks like a cash substitute with a floating yield, but nearly half its portfolio hides a concentration risk that most investors scanning the headline number never think to check.

The Fed???s hawkish stance and elevated inflation could keep rates higher for longer. Here are four bond ETFs that could benefit.

The Fed's rate hike and stronger GDP outlook could benefit dollar, small-cap and floating-rate ETFs while supporting cash-like assets.

The Fed is having its latest meeting this week, amid growing concern over yields and inflation. The two day session is widely expected to include the Federal Reserve raising rates at least somewhat to try to assuage markets.

Treasury yields hit multi-year highs as Fed rate hike expectations, oil prices and fiscal concerns weigh on bonds. Explore ETFs positioned for rising rates.

Real rates are firmly positive at the short-end and I can't see that changing anytime soon. I think FLOT presents cost-effective exposure to floaters, allowing portfolios to set-up a barbell alongside duration. I also deem equity valuations high and don't think it's a bad time for a cash plus vehicle such as FLOT.

The 30-year Treasury bond yield recently reached its highest level since 2007, sparking concern about a stock market sell-off. Long-term investors shouldn't worry too much about short-term moves in bond yields.

The S&P 500 has risen about 2.6% since late June despite a global bond market selloff that pushed 10-year Treasury yields to a high of 4.815%.