Core Viewpoint - Floating rate notes (floaters) are considered an attractive fixed income option as Treasury yields rise, and the VanEck IG Floating Rate ETF (FLTR) remains appealing even with expected interest rate cuts by the Federal Reserve [1] Group 1: ETF Overview - FLTR is a $2.56 billion ETF that yields 4.28% and tracks the MVIS® US Investment Grade Floating Rate Index [1] - The ETF holds investment-grade corporate floaters, providing a yield advantage over Treasuries [1] - FLTR has a low correlation of 0.12 to the S&P 500, making it a good diversification tool for equity-heavy portfolios [1] Group 2: Suitability and Benefits - FLTR is suitable for a wide range of client portfolios, helping to broaden income streams and offering higher-yielding alternatives to cash instruments [1] - Floating rate notes (FRNs) can serve as a cash complement for investors with intermediate holding periods, accepting modest volatility for higher income potential compared to money market instruments or Treasury bills [1] - Approximately 82% of FLTR's holdings are rated AA or A, indicating high credit quality [1] Group 3: Investment Strategy - FRNs are recommended when seeking higher income compared to risk-free rates in environments with elevated or rising short-term rates, while avoiding duration losses of fixed-rate bonds [1] - Investors should be aware of issuer credit risk in exchange for spread-based yield when considering FRNs [1] - FLTR charges an annual fee of 0.14%, equating to $14 on a $10,000 investment [1]