TFLO ETF

The iShares Treasury Floating Rate Bond ETF may face lower yields as inflation pressures ease due to China's economic slowdown and oil price declines. TFLO has no credit risk and follows prevailing Fed funds rates. Still, there are roadblocks to inflation that could mean rate cut expectations implied by markets are optimistic.

The iShares Treasury Floating Rate Bond ETF provides investors with a way to protect their capital and receive a consistent income during periods of increasing interest rates. TFLO mainly holds U.S. Treasury bonds that have variable interest rates, allowing it to remain unaffected by rate hikes. While the fund's concentration on U.S. Treasury securities may limit diversification options, it also provides security in a rising rate environment.

TFLO: Simple Floating Rate Treasury ETF, Slightly Stronger Than T-Bills

iShares Treasury Floating Rate Bond ETF and WisdomTree Floating Rate Treasury Fund ETF are stable ETFs that pay monthly dividends sourced from floating rate U.S. treasuries. These funds are essential for traders to be aware of as they offer a way to earn compound interest on cash positions. TFLO and USFR provide stable collateral for derivatives traders and can be used as a way to wait for a market pullback or raise cash before a crash.

The iShares Treasury Floating Rate Bond ETF has provided solid returns for investors due to higher coupons tied to rising short-term interest rates. Investors should be cautious of potential rate cuts from the Fed in 2024 if inflation continues to moderate. TFLO offers exposure to floating rate treasury notes and has a low expense ratio, but investors may want to consider switching to 2-year notes ahead of potential rate cuts.

The iShares Treasury Floating Rate Bond ETF currently has a 30-day SEC yield of 5.3%, which is high relative to inflation expectations and yields on risky bonds and stocks. The TFLO tracks US Treasury floating rate bonds, which have coupon payments that periodically reset based on short-term interest rates. Despite high yields on short-term bonds, investors are still favoring risk assets, making the TFLO's yield even more impressive compared to stocks and corporate bonds.

For investors seeking momentum, iShares Treasury Floating Rate Bond ETF TFLO is probably on radar. The fund just hit a 52-week high and is up 0.9% from its 52-week low price of $50.28/share.

iShares Treasury Floating Rate Bond ETF is a minimal-duration exchange-traded fund meant to track rates in the U.S. It's a Treasury-based instrument that does not have meaningful credit risk, some would say none at all. While it also yields well according to the curve of short term rates, it also will respond well to rates staying higher for longer, which is a concern of ours.

For investors seeking momentum, iShares Treasury Floating Rate Bond ETF TFLO is probably on radar. The fund just hit a 52-week high and is up 0.7% from its 52-week low price of $50.28/share.