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TFLR ETF — Holdings & Analysis

The T. Rowe Price Floating Rate ETF (TFLR) is an equity ETF managed by T. Rowe, with $0.54 billion in assets under management. Launched in November 2022, TFLR seeks to generate high current income, with capital appreciation as a secondary objective. A key differentiator is its focus on floating rate instruments, providing potential insulation from rising interest rates. However, investors should note its relatively high expense ratio of 0.61% compared to category averages, and the fund's current allocation of 100% to cash and other liquid assets.

T. Rowe Price Floating Rate ETF (TFLR) ETF — Price, Holdings & Analysis

The T. Rowe Price Floating Rate ETF (TFLR) is an equity ETF managed by T. Rowe, with $0.54 billion in assets under management. Launched in November 2022, TFLR seeks to generate high current income, with capital appreciation as a secondary objective. A key differentiator is its focus on floating rate instruments, providing potential insulation from rising interest rates. However, investors should note its relatively high expense ratio of 0.61% compared to category averages, and the fund's current allocation of 100% to cash and other liquid assets.

ETF Overview

The fund seeks high current income and, secondarily, capital appreciation.
TFLR aims to provide investors with high current income and capital appreciation by investing in floating rate instruments. Unlike fixed-rate bonds, floating rate securities have interest rates that adjust periodically based on a benchmark rate, potentially offering a hedge against rising interest rates. The ETF's current strategy involves allocating 100% of its assets to cash and other, which may reflect a defensive positioning or a transitional phase in its investment strategy. With 331 holdings, TFLR offers diversification within the floating rate asset class, although the current allocation to cash may limit its exposure to the intended asset class. Investors seeking exposure to floating rate notes as a means of mitigating interest rate risk may find TFLR a suitable option, but should monitor the fund's asset allocation to ensure alignment with their investment objectives. Past performance does not guarantee future results.

Risk Metrics

TFLR presents several risk considerations for potential investors. The fund's current allocation of 100% to cash and other assets introduces concentration risk, as the portfolio lacks diversification across different sectors or asset classes. While the fund's beta of 0.05 suggests low volatility relative to the broader market, this may be due to its current cash allocation. The expense ratio of 0.61% is higher than the category average, which can create a drag on performance over time, especially in a low-yield environment. Investors should carefully evaluate the fund's investment strategy and asset allocation to determine if it aligns with their risk tolerance and investment objectives. Past performance does not guarantee future results.

Expense Ratio

0.61%

Sector Allocation

  • Cash & Others: 100.0%
  • Other: 100.0%

Dividend Yield

0.00%
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Risk Metrics

  • Beta: 0.05

Questions & Answers

What is TFLR and what does it track?

The T. Rowe Price Floating Rate ETF (TFLR) is an actively managed equity ETF that seeks to provide high current income and, secondarily, capital appreciation. Launched in November 2022, TFLR invests primarily in floating rate debt instruments. However, currently, the fund has 100% of its assets allocated to cash and other, which may not reflect its intended investment strategy. Investors should monitor the fund's asset allocation to ensure it aligns with their investment objectives. The fund is managed by T. Rowe Price and has an AUM of $0.54 billion.

What is the expense ratio for TFLR?

The expense ratio for TFLR is 0.61%. This means that for every $10,000 invested in the fund, investors will pay $61 in annual fees. While this provides access to a diversified portfolio of floating rate instruments, the 0.61% expense ratio is higher than the category average, which can impact overall returns over the long term. the may be worth researching expense ratio when evaluating TFLR's potential performance.

What are the top holdings in TFLR?

As of the latest data, TFLR has 100% of its assets allocated to cash and other. Therefore, there are no specific holdings to list. This allocation may be temporary or reflect a strategic decision by the fund manager. Investors should review the fund's holdings periodically to understand its current investment exposure. The fund holds 331 assets in total.

Is TFLR a good long-term investment?

Whether TFLR is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. TFLR's focus on floating rate instruments may provide some protection against rising interest rates, but its current allocation to cash may limit its potential for capital appreciation. With an expense ratio of 0.61% and a dividend yield of 0.00%, investors should carefully consider the fund's costs and income potential. Past performance does not guarantee future results. Investors should conduct thorough research and consult with a financial advisor before making any investment decisions.

How does TFLR compare to similar ETFs?

TFLR distinguishes itself with its active management approach within the floating rate ETF landscape. While many similar ETFs track a specific index, TFLR's active management allows for flexibility in security selection and portfolio construction. With an AUM of $0.54 billion, TFLR is a mid-sized player in the category. Its expense ratio of 0.61% is higher than some passively managed floating rate ETFs, but the active management may justify the higher cost for some investors. Investors should compare TFLR's performance, risk profile, and investment strategy to those of its peers to determine which fund best aligns with their needs.

Does TFLR pay dividends?

As of 2026-03-15, TFLR has a dividend yield of 0.00%. This indicates that the fund is not currently distributing income to shareholders. The fund's investment strategy focuses on generating high current income, but the actual distribution may vary depending on market conditions and the fund's holdings. Investors seeking regular income may want to consider other ETFs with a higher dividend yield.