SPDR Bloomberg Investment Grade Floating Rate ETF (FLRN)
Summary
FLRN Chart
FLRN: Simple Cash-Plus ETF, Stable Share Price, Good Dividend Yield
Federal Reserve rates remain elevated, as do yields on cash and similar investments. FLRN invests in floating rate notes. Similar characteristics to t-bills, with a little bit more in risk, a little bit more in income. It yields 5.1%, and is a solid choice for more risk-averse investors.
FLRN: Caution Warranted (Rating Downgrade)
FLRN underperformed peers during the April 2025 sell-off and offers a yield only marginally above Fed Funds, limiting its upside. The ETF's heavy exposure to financials increases risk, especially in a recession or if spreads widen, despite its high credit quality. Alternatives like NEAR and SHY provide better risk-reward, especially as rate cuts loom and FLRN's yield premium narrows.
FLRN: What Is Next For This Floating Rate Fund (Rating Downgrade)
The thesis argues that FLRN, a floating rate ETF, is likely to underperform in a falling interest rate environment. The thesis highlights the strong historical performance of FLRN, the anticipated Fed rate cuts, and the potential negative impact of falling rates on FLRN's floating rate exposure. While some market participants are pricing a 50 bps September 2024 Fed cut, our base case predicts only 25 bps, with cuts at each Fed meeting after.
SPDR Bloomberg Investment Grade Floating Rate ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 39,364 | $1.21M | $1.21M | $2,188.78 | 0.18% |
| JJT John J. Terril TERRIL BROTHERS Inc. | 197,840 | $6.05M | $6.09M | $38,578.8 | 0.64% |
| BS Barrett Schultz Ashton Thomas Securities LLC | 1,946 | $60,054 | $59,907.61 | -$146.39 | -0.24% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 358 | $11,033.56 | $11,019.24 | -$14.32 | -0.13% |
| JS Jason Skolnick FIRST NATIONAL Corp. /MA/ /ADV | 73,650 | $2.25M | $2.27M | $16,946.58 | 0.75% |
SPDR Bloomberg Investment Grade Floating Rate ETF (FLRN) FAQ
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SPDR Bloomberg Investment Grade Floating Rate ETF Profile
| ARCA Exchange | US Country |
Overview
The company focuses on investment strategies that primarily involve securities within a specific index designed to track the performance of U.S. dollar-denominated, investment grade floating rate notes. By committing at least 80% of its total assets to securities either in the index or those deemed to have similar economic characteristics, the company strives to offer investment solutions that mirror the index's performance. This approach targets investors looking to gain exposure to investment grade floating rate notes, providing an investment avenue that aligns with the performance of these specific financial instruments.
Products and Services
- Index-Based Investment Fund
This product focuses on investing substantially all, but at least 80%, of its total assets in the securities that make up a specific index. The investment approach is designed for those seeking to mimic the performance of U.S. dollar-denominated, investment-grade floating rate notes through a diversified portfolio.
- Investment Advisory Services
The company offers services through its Adviser, who determines securities that have economic characteristics substantially identical to those in the index. This service is curated for investors who look for expert advice in securing investments that closely follow the benchmark of U.S. dollar-denominated, investment-grade floating rate notes.
