VanEck Vectors Australian Floating Rate ETF - Register your interest
VanEck is in the final stages of preparations to launch a new ETF on the ASX, the VanEck Vectors Australian Floating Rate ETF (ASX:FLOT).
The ETF, which is the only one of its kind in Australia, will offer investors exposure to a diversified portfolio of Australian floating rate notes (FRNs) and will track the Bloomberg AusBond Credit FRN 0+ Yr Index which includes around 200 Australian-issued FRNs from over 80 issuers.
Commenting on the launch, Arian Neiron, managing director of VanEck Australia, said: “FLOT is designed to be a potential solution for investors who are seeking a defensive source of income with a higher yield than cash investments in an easy-to-access and easily tradeable ETF.
"The strategy may suit investors such as retirees and self-managed superannuation funds who wish to preserve their capital but diversify out of very low yielding term deposits. Concerns about rising interest rates have prompted many investors to consider moving out of longer-term bonds where duration risk, or the risk that bond prices will fall if interest rates rise, is greater.
“We expect to see strong demand for this ETF, which will give broad exposure to investment grade quality short-terms bonds for a very low management cost.”
Listing on ASX: July 7