The VanEck Australian Floating Rate ETF (ASX: FLOT) is a floating rate bond ETF that seeks to track the return of the Bloomberg AusBond Credit FRN 0+ Yr Index. It invests in investment-grade Australian floating rate bonds.
Details about this ETF
| Key information | |||
|---|---|---|---|
| Fees | Size | Growth / Defensive | |
| 0.22% p.a. | $1.3B | Defensive | |
| Performance | ||
|---|---|---|
| 1 year | 3 years (p.a.) | 5 years (p.a.) |
| 4.54% | 4.99% | 3.80% |
Performance is as of 31 August 2026. Past performance of financial products is no guarantee of future performance.
What sectors does this ETF invest in?
Sector
Which countries are included in this ETF?
Why does Stockspot choose this ETF in its portfolios?
1
Tracks an index for low management fees and more reliable returns.
2
Provides transparency and potential tax efficiency.
3
Ample market liquidity with daily entry and exit prices.
Invest in one ETF vs. a portfolio approach
Invest in single ETF
Performance is tied to a specific sector or index. You may experience higher volatility and miss out on gains from other sectors or asset classes.
Limited risk management due to exposure to a specific sector or index.
Rebalancing is limited to the investments within the ETF.
VS
Invest in a portfolio of ETFs
Invest in a portfolio of ETFs
Potential for more consistent returns as different assets perform well in different market conditions.
Enhanced risk management through broader diversification across different sectors, asset classes, and geographies.
Easier to maintain desired asset allocation through buying and selling of assets in response to market changes. This can help manage risk and potentially improve returns over time.
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Frequently asked questions
What is the average return on FLOT?
VanEck Australian Floating Rate ETF (FLOT) has seen total returns of 4.54% over the past 1 year, 4.99% p.a. over the past 3 years and 3.80% p.a. over the past 5 years, as of 31 August 2026.
Performance is as of 31 August 2026. Past performance of financial products is no guarantee of future performance.
Does FLOT pay a dividend?
Yes. The VanEck Australian Floating Rate ETF (ASX: FLOT) pays distributions to investors from income generated by its underlying floating rate bonds. The amount of each distribution can vary over time.
What does the FLOT ETF invest in?
FLOT invests in investment-grade Australian dollar floating rate bonds, primarily issued by banks and other Australian companies. Its underlying securities include bonds issued by major financial institutions such as Westpac, ANZ, National Australia Bank and Commonwealth Bank.
What type of bonds does FLOT invest in?
FLOT invests in investment-grade floating rate bonds issued in Australian dollars. Unlike traditional fixed-rate bonds, the interest payments on floating rate bonds can reset periodically based on changes in interest rates.
Does FLOT benefit when interest rates rise?
Floating rate bonds can benefit from rising interest rates because their interest payments can reset higher as market rates increase. However, the performance of FLOT is also affected by credit spreads, bond prices, distributions and other market factors.