Floating-Rate Bonds: A Low-Duration Option Amid Interest Rate Uncertainty

The article discusses the iShares Floating Rate Bond ETF (FLOT), a low-duration, variable-rate instrument that is suitable for investors in a rising interest rate environment. FLOT invests in a portfolio of floating-rate bonds with short maturities, providing investors with exposure to interest rate fluctuations while minimizing credit risk. The fund's low duration reduces the impact of interest rate changes on the portfolio's value.