Summary

• I rate the iShares Floating Rate Bond ETF (FLOT) as a HOLD, favoring its high credit quality, low risk, and yield premium over T-bills for short-term cash parking.
• FLOT's assets are, in the main, FRNs issued by AAA Supranationals, or AA and A-rated commercial banks. The chances of credit losses are remote.
• FLOT's returns have outpaced CPI and will likely continue to do so. Its assets' credit spread are a buffer when rates rise, and a source of outperformance when rates fall.
• FLOT and FLRN are functionally equivalent, but FLOT's larger AUM, historic outperformance, superior downside protection, and maturity profile, make it preferable.

I recently moved from a 100% Equity weighting to 92% in a pot of money with an investment horizon of at least a decade. For now, I want to park the cash into something that is liquid and pays a little more yield than

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