iShares Floating Rate Bond ETF

iShares Floating Rate Bond ETF (FLOT) tracks the Bloomberg US Floating Rate Note < 5 Years Index. It held 545 investment-grade bonds as of July 31, 2026, and their interest payments reset as short-term rates change. Because the coupons float, its price has moved far less than fixed-rate bonds when rates rise. It paid a 4.25% trailing yield monthly as of October 27, 2026. Its 0.15% fee matches its nearest rival, FLRN, but is above the 0.12% peer average.

• Over the year to Oct 27, 2026, FLOT returned +4.3%, 3rd of 8 among similar funds.
• Its 5-year annualized return was +4.5% and its 10-year +3.1%.
• In the 2020 COVID crash it fell 13.5% and regained its old high 4.6 months after the low.
• Its worst full calendar year was 2014 (+0.1%); its best was 2024 (+6.5%).
• The deepest fall in its price history was 13.5% (Feb 19, 2020 to Mar 19, 2020), recovered by Aug 5, 2020.

As of Jul 31, 2026, the fund held 545 securities; the ten largest made up 8.78% of assets, and 4.59% sat in cash and money-market holdings.

The bonds mature in 2 years on average (weighted by size), with an average coupon of 4.4%.

• Over the three months to Jul 31, 2026, investors added a net $1.03B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.37%, +0.37%, +0.34%.

FLOT, managed by BlackRock Fund Advisors, tracks the Bloomberg US Floating Rate Note < 5 Years Index. The index holds U.S. dollar, investment-grade floating rate notes. These are bonds whose interest rate resets regularly. Each bond pays a reference rate, such as SOFR (a benchmark for overnight borrowing costs), plus a fixed extra amount. Bonds must have between one month and five years left to maturity and at least $300 million outstanding. Dollar bonds from non-U.S. companies, governments and supranational lenders such as the World Bank can qualify. The index weights bonds by market value and updates on the last day of each month.

The fund uses representative sampling. It may not own every bond in the index. Instead it holds a sample chosen to match the index's maturity, credit quality, yield and rate sensitivity. At least 80% of assets go into index bonds. Up to 10% can go into futures, options, swaps or other bonds, though it held no derivatives as of July 31, 2026. It may lend out up to one-third of its assets. It concentrates in the same industries as the index, which leans heavily on financial companies.

Because coupons reset, rising rates lift the fund's income instead of cutting its price sharply. Falling rates shrink that income. Prices can also slip if coupons lag behind market rates or if lenders worry about the issuers' credit.

• FLOT charges 0.15% a year, versus an average of 0.12% for the similar funds below (4th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

Short maturities, investment-grade issuers and coupons that reset with rates have kept its price swings small, so it can act as a near-cash cushion that still pays income.

FLOT launched in 2011, so it has no record from 2008. In the 2020 COVID crash it fell 13.5% between February 19 and March 19, 2020, as credit markets froze. It recovered by August 5, 2020, about 4.6 months later. In the 2022 rate shock it dipped only 1.7% and still gained 1.23% for the year. Its weakest calendar year was 2014, at about 0.1%. A retiree who has to sell in a sudden credit panic could still lock in a loss.

Its trailing yield was 4.25% as of October 27, 2026, paid monthly. That income follows short-term rates and will shrink if they fall. In the SEC's standard example, $10,000 invested would cost $192 in fees over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).