FLDR

FLDR launched at a time when investors were sensitive to rising interest rates. The underlying index aims to optimize between interest rate risk and credit risk, with the goal of higher income potential than a money market and lower volatility than a short-term bond fund. FLDR holds two main components: US investment-grade floating-rate corporates with less than five years to maturity and fixed-rate Treasury notes with maturities ranging between seven to ten years. Floating-rate notes are weighted by the market cap of each security, subject to an issuer cap of 3.5%. Treasuries are weighted to create a portfolio duration of less than on year. The index is rebalanced monthly.