TFLO Profile
iShares Treasury Floating Rate Bond ETF is designed to offer investors exposure to U.S. Treasury securities with floating interest rates. The fund aims to invest at least 80% of its assets in securities that are part of its underlying index, which is managed by BlackRock Fund Advisors (BFA). Additionally, it commits at least 90% of its assets to U.S. Treasury securities deemed by BFA to be instrumental in tracking the performance of the index.
The underlying index is a market capitalization-weighted benchmark that specifically measures the performance of U.S. Treasury securities with floating or variable interest rates. These floating rate securities are government-issued bonds whose interest payments adjust periodically based on changes in market interest rates, thereby helping to mitigate interest rate risk and provide more stable returns in a rising rate environment.
By focusing on floating rate U.S. Treasury securities, the fund seeks to provide investors with income that is less sensitive to interest rate fluctuations compared to fixed-rate bonds. This investment strategy is particularly relevant in a volatile interest rate environment where traditional fixed-rate bonds may experience significant price declines. The fund’s exposure to government-backed securities also enhances its credit quality and safety profile.
Managed by iShares, a division of BlackRock, the fund benefits from the firm's extensive expertise in managing fixed income portfolios and innovative investment strategies. BlackRock’s active management ensures that the ETF closely follows the performance of its underlying index, offering investors a reliable and efficient means of accessing floating rate U.S. Treasury securities. The iShares Treasury Floating Rate Bond ETF is well-suited for investors seeking to hedge against interest rate risk while maintaining exposure to high-quality government debt.
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