TFLR Profile
The T. Rowe Price Floating Rate ETF (TFLR) is an exchange-traded fund designed to provide investors with exposure to floating-rate loans primarily issued by corporations. Launched on December 3, 2020, TFLR aims to generate current income while preserving capital by investing in debt instruments whose interest rates adjust periodically based on market benchmarks like LIBOR. Managed by T. Rowe Price Associates, the ETF focuses on high-quality floating-rate loans that offer potential income with reduced interest rate risk compared to fixed-rate bonds.
TFLR has an expense ratio of 0.39% and manages approximately $100 million in assets. Its portfolio comprises diversified floating-rate loans issued by corporations across various sectors. T. Rowe Price employs rigorous credit analysis to select loans from issuers with strong credit profiles and liquidity, aiming to optimize income generation while managing credit risk.
Investors interested in TFLR should consider its strategy as a potential hedge against rising interest rates, as floating-rate loans typically adjust their interest rates in response to changes in short-term rates. This characteristic makes TFLR suitable for investors seeking income from fixed income investments while navigating market conditions influenced by interest rate fluctuations.
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