iShares Floating Rate Bond ETF (FLOT) offers cost-effective exposure amid positive short-term real rates and high equity valuations.

The iShares Floating Rate Bond ETF (FLOT) is highlighted as a favorable investment due to firmly positive short-term real interest rates and high equity valuations, making it a cost-effective option for portfolios seeking exposure to floating rate bonds. The ETF provides a way to balance portfolios with a barbell strategy alongside duration bonds. However, there is caution about its nearly 50% exposure to corporate issuers in the banking sector during a period of increased fiscal risk. Overall, FLOT is seen as a good cash-plus vehicle with contained credit risk unless an extreme market event occurs.