At a glance
FLTR charges 0.14% a year, below the 0.27% average of the 7 funds most like it (the 3rd cheapest of 8). It has $3.00B in assets, the 5th largest of that group; it paid 4.42% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.6% with distributions reinvested, 2nd of those 8 funds; over three years it returned +5.9% a year. At its worst it fell 17.8% in the 2020 crash (S&P 500: 33.7%) and 3.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 6 months after the lows. Its ten largest positions make up 9.3% of the fund, out of 464 in all.
The short version
VanEck IG Floating Rate ETF (FLTR) tracks the MVIS US Investment Grade Floating Rate Index. That index holds U.S. dollar floating-rate notes from investment-grade companies, many of them big banks in the US, Australia, the UK and Japan. The interest on these notes resets as short-term rates change, so the fund's income rises and falls with rates. It costs 0.14% a year, slightly less than the floating-rate funds FLRN and FLOT at 0.15%.
Price history
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FLTR +4.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLTR official prospectus, to Dec 31, 2025 | — | +5.32% | — | +4.22% | +3.35% | — |
| FLTR price data to Oct 27, 2026 | +3.6% | +4.6% | +5.9% | +4.8% | +3.6% | +2.6% |
- Over the year to Oct 27, 2026, FLTR returned +4.6%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +4.8% and its 10-year +3.6%.
- In the 2020 COVID crash it fell 17.8% and regained its old high 5.3 months after the low.
- Its worst full calendar year was 2015 (-0.4%); its best was 2012 (+8.6%).
- The deepest fall in its price history was 17.8% (Feb 21, 2020 to Mar 18, 2020), recovered by Aug 27, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.6% | — |
| 2025 | +5.3% | +5.32% |
| 2024 | +7.4% | +7.21% |
| 2023 | +7.4% | +7.43% |
| 2022 | +0.7% | +0.68% |
| 2021 | +0.6% | +0.66% |
| 2020 | +1.4% | +1.66% |
| 2019 | +5.7% | +5.43% |
| 2018 | +0.3% | +0.52% |
| 2017 | +2.9% | +2.82% |
| 2016 | +2.5% | +2.04% |
| 2015 | -0.4% | — |
| 2014 | +0.5% | — |
| 2013 | +1.5% | — |
| 2012 | +8.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 11.1% over that stretch · deepest drop along the way 17.8%, back to its old high 5.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.7% over that stretch · deepest drop along the way 3%, back to its old high 6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8200 | |
| 2025 | $1.2800 | -15.2% |
| 2024 | $1.5100 | -0.7% |
| 2023 | $1.5200 | +166.7% |
| 2022 | $0.5700 | +256.2% |
| 2021 | $0.1600 | -57.9% |
| 2020 | $0.3800 | -51.3% |
| 2019 | $0.7800 | +18.2% |
| 2018 | $0.6600 | +50.0% |
| 2017 | $0.4400 | +57.1% |
| 2016 | $0.2800 | +55.6% |
| 2015 | $0.1800 | +50.0% |
| 2014 | $0.1200 | -20.0% |
| 2013 | $0.1500 | -37.5% |
| 2012 | $0.2400 |
What's inside
As of Jul 31, 2026, the fund held 464 securities; the ten largest made up 9.28% of assets.
| Holding | Weight | |
|---|---|---|
| COMMONWEALTH BANK AUST Bonds and notes | 1.26% | |
| HSBC HOLDINGS PLC Bonds and notes | 1.08% | |
| HSBC HOLDINGS PLC Bonds and notes | 1.06% | |
| WESTPAC BANKING CORP Bonds and notes | 1.03% | |
| MITSUBISHI UFJ FIN GRP Bonds and notes | 0.84% | |
| SUMITOMO MITSUI TR BK LT Bonds and notes | 0.83% | |
| ABBOTT LABORATORIES Bonds and notes | 0.83% | |
| AMAZON.COM INC Bonds and notes | 0.82% | |
| SUMITOMO MITSUI FINL GRP Bonds and notes | 0.76% | |
| COMMONWEALTH BANK AUST Bonds and notes | 0.76% | |
| AUST & NZ BANKING GROUP Bonds and notes | 0.71% | |
| SUMITOMO MITSUI FINL GRP Bonds and notes | 0.68% | |
| WELLS FARGO & COMPANY Bonds and notes | 0.65% | |
| SUMITOMO MITSUI TR BK LT Bonds and notes | 0.64% | |
| MIZUHO FINANCIAL GROUP Bonds and notes | 0.64% |
By country
United States 42.27%Australia 11.38%United Kingdom 11%Japan 10.2%Canada 5.86%By issuer
Companies 97.53%Foreign governments 1.28%Other 0.12%The bonds mature in 3.1 years on average (weighted by size), with an average coupon of 4.55%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $331.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.47%, +0.43%, +0.35%.
How it works
FLTR is a passive index fund. It tries to match the price and yield of the MVIS US Investment Grade Floating Rate Index, and it does not try to beat it. The index holds U.S. dollar floating-rate notes from companies that file public reports in the US and carry investment-grade ratings, meaning credit agencies judge them fairly likely to repay. A floating-rate note pays interest that resets from time to time based on a benchmark interest rate. The fund keeps at least 80% of its assets in bonds from the index. As of June 30, 2026, the index held 456 notes from 148 issuers.
The fund does not buy every bond in the index. It uses "sampling," which means buying a subset chosen to have about the same risk and return. As of July 31, 2026, it had 464 holdings, and the top ten made up 9.28% of assets. The fund is non-diversified, so it can put more money into a single issuer. As of April 30, 2026, financial companies made up a significant share of the fund. About 39% of the index consisted of Rule 144A securities, which are bonds sold privately to large institutions. These can be harder to trade and to value.
Because the coupons reset, rate changes move the fund's price less than they move fixed-rate bonds. Its income, however, falls when rates fall. As of July 31, 2026, the average time to maturity was 3.1 years and the average coupon was 4.55%. Portfolio turnover was 75%.
What it really costs
- FLTR charges 0.14% a year, versus an average of 0.27% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $14 in the first year and $179 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLTR | $14 | $45 | $79 | $179 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
FLTR holds short, investment-grade floating-rate notes, so its price has usually moved very little, though it did fall sharply in early 2020.
FLTR could act as a low-volatility bond holding that pays income every month. Its yield over the past 12 months was 4.42% as of October 27, 2026. It costs 0.14% a year, or about $14 in the first year and $179 over ten years on $10,000 in the SEC's standard example. The fund started in 2011, so it has no record from the 2008 crisis. In the 2020 COVID crash, its share price fell 17.8% between February 21 and March 18, 2020, and it took about five months to recover. In 2022 it dipped 3% and was back to its old high within six months. Its worst calendar year on price was 2015, with a 0.4% loss. The 2020 drop shows that someone who has to sell during a panic could take a real loss. Its income also shrinks when short-term rates fall. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income that rises with short-term rates, from investment-grade corporate notes averaging 3.1 years to maturity.
- People holding cash-like reserves who accept some credit risk for extra income. One-year volatility was 0.8% as of October 27, 2026.
- Cost-conscious buyers of floating-rate funds: FLTR charges 0.14% a year, compared with 0.15% for FLRN and FLOT.
Look elsewhere if
- Those who want to lock in a steady income. FLTR's payments fall when short-term rates drop, while fixed-rate bonds keep paying the same coupon.
- Investors wary of bank risk. Large Australian, British and Japanese banks dominate the top holdings, and financials make up a significant share.
- Anyone who needs money that can't lose value. The share price fell 17.8% in early 2020, and the fund is not FDIC-insured.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FLTR this fund | 3.1 yrs | 0.14% | $3.00B | +4.6% | +5.9% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| FLRN SPDR Bloomberg Investment Grade Floating Ra… | 2 yrs | 0.15% | $2.97B | +4.4% | +5.3% |
| FLOT iShares Floating Rate Bond ETF | 2 yrs | 0.15% | $10.32B | +4.3% | +5.3% |
| FLRT Pacer Pacific Asset Floating Rate High Inco… | 6.9 yrs | 0.6% | $659.4M | +4.5% | +7.5% |
| PFRL PGIM Floating Rate Income ETF | 8.1 yrs | 0.72% | $125.5M | +5.0% | +7.7% |
Questions investors ask
Does FLTR pay monthly dividends?
Yes. FLTR pays income every month. Over the 12 months to October 27, 2026, it paid $1.13 per share, a yield of 4.42%. The interest on its floating-rate notes resets with short-term rates, so the monthly payments are not fixed. They tend to rise when rates rise and shrink when rates fall. That makes the income less predictable than income from a fixed-rate bond fund.
What's the difference between FLTR and FLOT?
Both funds hold investment-grade floating-rate notes, but they follow different indexes. FLTR charges 0.14% a year and iShares' FLOT charges 0.15%. FLOT is larger, with $10.3 billion in net assets as of July 31, 2026, compared with about $3.0 billion for FLTR. FLTR's bonds were longer, averaging 3.1 years to maturity against 2 years for FLOT. As of October 27, 2026, FLTR returned 4.6% over one year and 5.9% a year over three years, compared with 4.3% and 5.3% for FLOT.
Is FLTR safe when interest rates rise?
Its price is much less sensitive to rising rates than most bond funds, because its coupons reset upward as rates rise. In 2022, when rising rates hurt most bonds, FLTR returned 0.68%, according to its prospectus. It still carries credit risk, meaning the risk that borrowers fail to pay or get downgraded. Its share price fell 17.8% in the 2020 COVID crash before recovering about five months later. It is not insured or guaranteed.
What does FLTR hold?
As of July 31, 2026, FLTR held 464 floating-rate notes, and the top ten made up 9.28% of the fund. The largest positions were notes from Commonwealth Bank of Australia (1.26%), two HSBC Holdings notes (about 1.1% each), Westpac, Mitsubishi UFJ, Sumitomo Mitsui Trust, Abbott Laboratories and Amazon. By issuer country, the US made up 42%, Australia 11%, the UK 11% and Japan 10%. All the notes are U.S. dollar-denominated.
How has FLTR performed over 10 years?
FLTR returned 3.35% a year over the 10 years to December 31, 2025, according to its prospectus. Over five years it returned 4.22% a year, and over one year 5.32%. Its strongest calendar years were 2023 (7.43%) and 2024 (7.21%). Its weakest included 2018 (0.52%) and 2022 (0.68%). Based on share price, it returned 3.6% a year over the 10 years to October 27, 2026. Returns have closely followed the level of short-term interest rates.