FLOT - VanEck Floating Rate Notes ETF | Australian Fixed Income

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VanEck Australian Floating Rate ETF FLOT

Fund description: FLOT invests in a diversified portfolio of Australian dollar denominated Floating Rate Bonds with the aim of providing investment returns (before fees and costs) that closely track the returns of the Index.

Index description:  The Bloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0) is a market value weighted index comprising floating rate bonds that are of investment grade quality. The index typically includes bonds issued by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and Australian listed property trusts (A-REITs).

Country of domicile: Australia

 as at 26-Nov-21

  • Exchange

    ASX
  • ASX code

    FLOT
  • Bloomberg index code

    BAFRN0
  • Index provider

    Bloomberg
  • NAV

    $24.95
  • Units outstanding

    12,943,528
  • Net assets

    $322.9M
  • Number of holdings

    182
  • Inception date1

    05-Jul-17
  • ASX commencement

    07-Jul-17

1The date the ETF was seeded prior to quotation on ASX.

as at 26-Nov-21

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Key benefits

Dedicated Australian Floating Rate Notes (FRNs) market benchmark exposure
Access to a diversified portfolio of FRNs which represent the Bloomberg AusBond Credit FRN 0+ Yr Index


Potential to protect against rising rates

FRNs pay coupons (interest) that vary with short-term interest rates. Interest rates are reset periodically resulting in reduced duration (interest rate) risk


Yield premium

For an elevated risk FRNs typically offer a higher yield

Yields as of 26-Nov-21

  • Running yield

    0.90%
  • Yield to maturity

    1.07%

Fundamentals as of 26-Nov-21

  • Credit rating

    A+
  • Average maturity (years)

    1.91
  • Modified duration (years)

    0.13

Trading information

  • ASX code

    FLOT
  • IRESS code

    FLOT.AXW
  • Units outstanding

    12,943,528
  • ISIN

    AU00000FLOT5

Fees and other costs  

  • Management costs p.a.

    0.22%

Key risks

An investment in the ETF carries risks associated with: bond markets generally, interest rate movements, issuer default, credit ratings, fund operations, liquidity and tracking an index. See the PDS for details.

Prices as at  26-Nov-21

NAV/
Last trade
Volume:
30-day avg/
Previous day
Daily change: NAV/
Last trade
YTD change:
NAV/
Last trade
Premium/
Discount
Premium/
Discount
Distribution charts
NAV &
Premium /Discount
History
NAV
Chart
FLOT $24.95
$24.97
60,233
26,359
$0.00 / +0.00%
$0.00 / +0.00%
+0.11%
+0.14%
$0.02
+0.09%

Performance history (%) View all ETFs » View all indices »

1 Mth 3 Mths 6 Mths 1 Yr 3 Yrs p.a. 5 Yrs p.a. 10 Yrs p.a. ETF Inception p.a.
Price return -0.18 -0.38 -0.42 -0.67 -0.09 -- -- -0.04
Income return 0.06 0.22 0.45 0.94 1.60 -- -- 1.87
Total return -0.12 -0.16 0.03 0.27 1.51 -- -- 1.83
Index (BAFRN0) -0.10 -0.10 0.16 0.52 1.73 2.21 3.22 2.03
1 Mth 3 Mths 6 Mths 1 Yr 3 Yrs p.a. 5 Yrs p.a. 10 Yrs p.a. ETF Inception p.a.
Price return -0.08 -0.11 -0.20 -0.19 -0.01 -- -- 0.02
Income return 0.00 0.16 0.40 0.88 1.63 -- -- 1.88
Total return -0.08 0.05 0.20 0.69 1.62 -- -- 1.90
Index (BAFRN0) -0.06 0.10 0.32 0.93 1.84 2.27 3.27 2.10

Top ten holdings (%) View all daily holdings » as at 31-Oct-21

No. of holdings: 174
Security name
Coupon
Maturity
Composite
rating^
Country
Currency
% of Fund
net assets
WESTPAC BANKING CORP
0.966
16-Nov-23
AA-
Australia
AUD
2.80
NATIONAL AUSTRALIA BANK LTD
0.810
21-Jan-25
AA-
Australia
AUD
2.68
AUSTRALIA & NEW ZEALAND BANKING GROUP L
1.042
06-Dec-23
A+
Australia
AUD
2.23
WESTPAC BANKING CORP
0.842
06-Mar-23
A+
Australia
AUD
2.07
COMMONWEALTH BANK OF AUSTRALIA
1.155
11-Jan-24
A+
Australia
AUD
1.97
AUSTRALIA & NEW ZEALAND BANKING GROUP L
0.915
09-May-23
A+
Australia
AUD
1.70
MACQUARIE BANK LTD
0.492
09-Dec-25
A
Australia
AUD
1.67
ROYAL BANK OF CANADA/SYDNEY
1.042
24-Apr-23
AAA
Canada
AUD
1.60
NATIONAL AUSTRALIA BANK LTD
0.919
05-Jul-22
AA-
Australia
AUD
1.59
WESTPAC BANKING CORP
1.125
07-Feb-22
A+
Australia
AUD
1.56
Top 10 Total (%) 19.87

Source: Bloomberg. These are not recommendations to buy or to sell any security.

^Composite rating is an evenly weighted blend of a bond’s Moody’s, S&P and Fitch credit ratings when there are two or more. ‘NR’ means the bond has one ‘Investment Grade’ rating. The above ratings are not a credit opinion by VanEck on any bond or the Fund or a recommendation to buy any individual security.

– country of risk

Country weightings (%) as at 31-Oct-21

  • Country

    Weightings (%)
  • Australia

    58.1
  • Canada

    9.7
  • Japan

    6.0
  • China

    5.8
  • Singapore

    5.2
  • Switzerland

    4.2
  • South Korea

    2.3
  • United States

    2.2
  • United Kingdom

    1.8
  • Netherlands

    1.6
  • Other/Cash

    3.0
  • Total

    99.9

Sector weightings (%) as at 31-Oct-21

  • Sector

    Weightings (%)
  • Banking Services

    96.0
  • Electric Utilities & IPPs

    0.7
  • Telecommunications Services

    0.7
  • Investment Banking & Investment Services

    0.6
  • Professional & Commercial Services

    0.4
  • Multiline Utilities

    0.3
  • Hotels & Entertainment Services

    0.3
  • Transport Infrastructure

    0.3
  • Beverages

    0.2
  • Other/Cash

    0.5
  • Total

    100.0

Credit quality (%) as at 31-Oct-21

Composite Contribution to
duration
% of Net
Assets
Investment Grade AAA 0.01 11.19
AA 0.06 47.35
A 0.04 30.59
BBB 0.01 10.81
Total Investment Grade -- 0.13 99.94

Maturity (%) as at 31-Oct-21

Average Portfolio Maturity: 1.93 Years