FLRN Profile
The SPDR Bloomberg Investment Grade Floating Rate ETF primarily invests at least 80% of its total assets in the securities included in its designated index, as well as in other securities that exhibit similar economic characteristics. This approach ensures that the fund’s portfolio closely mirrors the composition and characteristics of the index. The index itself is designed to track the performance of U.S. dollar-denominated floating rate notes that are classified as investment grade.
The ETF focuses on floating rate notes, which are debt instruments with interest rates that adjust periodically based on market conditions. This feature helps protect the fund’s performance from interest rate fluctuations, making it a suitable investment for those seeking income stability amid rising interest rates. The investment grade designation ensures that the securities in the fund are issued by entities with strong credit ratings, thereby reducing credit risk.
The index provides exposure to a broad spectrum of high-quality floating rate notes, including those issued by corporations and financial institutions. The floating rate structure of the underlying securities allows the ETF to offer attractive yields while mitigating interest rate risk. By investing in a diverse range of investment-grade floating rate notes, the fund aims to deliver steady income and capital preservation.
Managed by State Street Global Advisors, the ETF benefits from the firm's extensive experience in fixed-income and passive investment management. State Street’s rigorous selection process and in-depth analysis ensure that the fund remains aligned with its index, providing investors with a reliable tool for accessing investment-grade floating rate securities. The firm’s expertise underscores its commitment to delivering effective investment solutions that cater to income-focused investors in a variable interest rate environment.
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