FLTR

📎 Investment Objective

The VanEck IG Floating Rate ETF (FLTR) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the MVIS US Investment Grade Floating Rate Index.

✨ Key Features

• Exposure to investment-grade floating rate notes and other floating rate debt securities
• Designed to track the MVIS US Investment Grade Floating Rate Index
• Low expense ratio of 0.00%
• Potential to provide income and mitigate interest rate risk

⚠️ Primary Risks

• Credit risk: The fund is subject to the risk that the issuers of the floating rate notes may not be able to meet their interest or principal payments
• Interest rate risk: Floating rate notes may not fully mitigate interest rate risk, as the coupon rates may not adjust quickly enough to changes in market rates
• Liquidity risk: The fund may invest in securities that have limited liquidity, which could affect its ability to sell them at favorable prices
• Tracking error risk: The fund may not perfectly track the performance of its underlying index

👤 Best For

The VanEck IG Floating Rate ETF may be suitable for investors seeking exposure to investment-grade floating rate debt securities as a way to potentially generate income and mitigate interest rate risk in their fixed-income allocation. It may be particularly appealing to investors with a relatively short-term investment horizon who are looking for a low-cost, passively managed solution for this asset class.