Floating Rate ETF's?

[HF63]

Hi to all,


I have some CD's maturing in the few days and I was wondering about buying a floating rate ETF like FLRN or FLOT. I just do not know how this kind fund will behave if the fed decides to lower interest rate.


The CD interest has come down from last year, does why the question.

 

[Montecfo]

i have owned floating rate securities (through funds) for the last few years. They were ideal for a rising rate environment and did very well. Now I tend to think you want to own a high fixed yield if you believe we are in a declining rate environment, as I do.

As far as the floaters, they are still holding to their highs after a mild selloff at rate peak in the fall. I expect to sell them fairly soon.

 

[pb4uski]

If you look at graphs of the share prices for each ticker, it looks pretty stable to me other than a huge covid hit and recovery.