iShares Floating Rate Bond ETF (FLOT) offers 4% yield with potential income growth if Fed hikes rates.

The iShares Floating Rate Bond ETF (FLOT) invests in high-quality floating rate bonds, offering a 4.0% SEC yield. These bonds share characteristics with Treasury bills but provide slightly higher yield, risk, and volatility. Income from FLOT could increase if the Federal Reserve raises interest rates later this year, making it a potentially attractive option for income-focused investors. The ETF has performed reasonably well over the past three years and is discussed in depth within the CEF/ETF Income Laboratory investing community.