T. Rowe Price Launches Floating Rate ETF

T. Rowe Price has today announced the launch of their fifth actively managed ETF to start trading on the NYSE. The T. Rowe Price Floating Rate ETF (TFLR) is similar to the T. Rowe Price Floating Rate Fund as they both invest in floating-rate loans and debt securities. The loans are rated BB- and B- in an effort to keep volatility low. A quote from the portfolio manager states, “Floating rate bank loans hold a unique position across the broad fixed income landscape given their combination of a floating rate coupon and elevated placement in a company’s capital structure – an important risk management attribute.”