ETF Bond Type: Floating Rate

Exchange-traded funds (ETFs) are gaining popularity in the investment community due to their liquidity, low cost, and diversity of holdings. One type of ETF is a bond ETF that invests in debt securities such as government bonds and corporate bonds. Within the universe of bond ETFs, the floating rate variety aims to generate income through adjustable interest campaigns, thereby protecting investors from rising interest rates. This type of ETF offers exposure to the credit markets for a smaller investment compared to holding individual bonds. Investors can take advantage of the fixed income opportunities offered by floating rate bond ETFs for diversification and higher yields than other more traditional types of investments.