FLOT - VanEck Floating Rate Notes ETF | Australian Fixed Income

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VanEck Vectors 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).

 as at 21-Nov-19

  • Exchange

    ASX
  • ASX code

    FLOT
  • Bloomberg index code

    BAFRN0
  • Index provider

    Bloomberg
  • NAV

    $25.06
  • Units outstanding

    11,561,958
  • Net assets

    $289.7M
  • Number of holdings

    207
  • Inception date1

    05-Jul-17
  • ASX commencement

    07-Jul-17

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

as at 21-Nov-19

Key points

  • Potential to protect against rising rates
    Floating rate notes (FRNs) pay coupons (interest) that vary with short-term interest rates. Interest rates are reset periodically resulting in reduced duration (interest rate) risk
  • Higher yield relative to cash and term deposits
    For a slightly elevated risk, FRNs typically offer higher yields than the likes of cash and term deposits
  • Short-term high quality credit
    Only FRNs with investment grade credit rating are included in the index

Yields as of 20-Nov-19

  • Running yield

    1.87%
  • Yield to maturity

    1.38%

Fundamentals as of 19-Nov-19

  • Average maturity (years)

    2.27
  • Modified duration (years)

    0.14

Trading information

  • ASX code

    FLOT
  • IRESS code

    FLOT.AXW
  • Units outstanding

    11,561,958
  • ISIN

    AU00000FLOT5

Fees and other costs  

  • Management costs p.a.

    0.22%

Prices as at  21-Nov-19

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 $25.06
$25.09
49,427
54,350
$0.00 / -0.02%
$-0.01 / -0.02%
+1.13%
+1.36%
$0.03
+0.10%

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 -0.06 -0.43 -0.25 0.05 -- -- -- 0.07
Income return 0.18 0.59 1.26 2.53 -- -- -- 2.51
Total return 0.12 0.16 1.01 2.58 -- -- -- 2.58
Index (BAFRN0) 0.14 0.21 1.09 2.79 2.88 2.92 4.14 2.74
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 -0.10 -0.15 -0.08 0.10 -- -- -- 0.10
Income return 0.20 0.64 1.30 2.57 -- -- -- 2.52
Total return 0.10 0.49 1.22 2.67 -- -- -- 2.62
Index (BAFRN0) 0.12 0.53 1.30 2.88 2.90 2.94 4.18 2.79

Top ten holdings (%) View all daily holdings » as at 31-Oct-19

No. of holdings: 209
Security name
Coupon
Maturity
Composite
rating^
Country
Currency
% of Fund
net assets
AUSTRALIA & NEW ZEALAND BANKING GROUP L
1.675
17-Apr-20
AA-
Australia
AUD
2.71
WESTPAC BANKING CORP
1.720
31-Aug-22
AAA
Australia
AUD
2.00
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.095
16-Aug-21
AA-
Australia
AUD
1.81
NATIONAL AUSTRALIA BANK LTD
1.738
05-Jul-22
AA-
Australia
AUD
1.71
COMMONWEALTH BANK OF AUSTRALIA
1.755
17-Jul-20
AA-
Australia
AUD
1.66
WESTPAC BANKING CORP
2.131
03-Jun-21
AA-
Australia
AUD
1.64
NATIONAL AUSTRALIA BANK LTD
2.135
12-May-21
AA-
Australia
AUD
1.57
WESTPAC BANKING CORP
2.023
24-Apr-24
AA-
Australia
AUD
1.54
WESTPAC BANKING CORP
1.833
06-Mar-23
AA-
Australia
AUD
1.52
NATIONAL AUSTRALIA BANK LTD
1.609
04-Aug-20
AA-
Australia
AUD
1.38
Top 10 Total (%) 17.54

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-19

  • Country

    Weightings (%)
  • Australia

    66.7
  • Canada

    9.2
  • Japan

    4.9
  • China

    3.5
  • Singapore

    3.5
  • South Korea

    1.9
  • Switzerland

    1.8
  • United Kingdom

    1.7
  • Netherlands

    1.7
  • United States

    1.6
  • Other/Cash

    3.7
  • Total

    100.2

Sector weightings (%) as at 31-Oct-19

  • Sector

    Weightings (%)
  • Banks

    95.2
  • Sovereign

    1.1
  • Auto Manufacturers

    0.7
  • Telecommunications

    0.6
  • Electric

    0.5
  • Diversified Finan Serv

    0.4
  • Retail

    0.3
  • Savings&Loans

    0.2
  • Transportation

    0.2
  • Other/Cash

    0.6
  • Total

    99.8

Credit quality (%) as at 31-Oct-19

Composite Contribution to
duration
% of Net
Assets
Investment Grade AAA 0.01 2.41
AA 0.08 26.79
A 0.03 8.77
BBB 0.01 2.79
Total Investment Grade -- 0.13 40.76
Composite Rating: An evenly weighted blend of a security's Moody's, S&P and Fitch ratings. Not Rated indicates that a security is rated by fewer than two of the four rating agencies.

Maturity (%) as at 31-Oct-19

Average Portfolio Maturity: 2.21 Years