ETF Bond Type: Floating Rate Treasury
ETFs, or exchange traded funds, are a type of investment vehicle that combines the features of both stocks and mutual funds. ETFs trade on stock exchanges and can be bought and sold like any other stock. However, ETFs typically track an underlying index, such as the S&P 500, and provide investors with a diversified way to invest in a single asset class.
Floating Rate Treasury ETFs are a specific type of ETF that invests in floating rate Treasury bonds. These bonds are issued by the US government and have a variable interest rate that is tied to an underlying index, such as the London Interbank Offered Rate (LIBOR). Floating Rate Treasury ETFs offer investors exposure to this asset class with the simplicity and liquidity of an ETF. In addition, these ETFs can provide a hedge against rising interest rates.