FALN vs. FLOT
Compare and contrast key facts about iShares Fallen Angels USD Bond ETF (FALN) and iShares Floating Rate Bond ETF (FLOT).
FALN and FLOT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FALN is a passively managed fund by iShares that tracks the performance of the Bloomberg US High Yield Fallen Angel 3% Capped Index. It was launched on Jun 14, 2016. FLOT is a passively managed fund by iShares that tracks the performance of the Bloomberg US Floating Rate Notes (<5 Y). It was launched on Jun 14, 2011. Both FALN and FLOT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FALN or FLOT.
Key characteristics
| FALN | FLOT | |
|---|---|---|
| YTD Return | 0.77% | 2.46% |
| 1Y Return | 11.12% | 7.12% |
| 3Y Return (Ann) | 0.89% | 3.47% |
| 5Y Return (Ann) | 4.89% | 2.67% |
| Sharpe Ratio | 1.75 | 8.69 |
| Daily Std Dev | 5.89% | 0.81% |
| Max Drawdown | -29.22% | -13.54% |
| Current Drawdown | -2.18% | 0.00% |
Correlation
The correlation between FALN and FLOT is 0.19, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
FALN vs. FLOT - Performance Comparison
In the year-to-date period, FALN achieves a 0.77% return, which is significantly lower than FLOT's 2.46% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FALN vs. FLOT - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is higher than FLOT's 0.20% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
FALN vs. FLOT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and iShares Floating Rate Bond ETF (FLOT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
FALN vs. FLOT - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 5.34%, which matches FLOT's 5.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 5.34% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% | 0.00% | 0.00% |
FLOT iShares Floating Rate Bond ETF | 5.36% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% | 0.44% | 0.47% |
Drawdowns
FALN vs. FLOT - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, which is greater than FLOT's maximum drawdown of -13.54%. Use the drawdown chart below to compare losses from any high point for FALN and FLOT. For additional features, visit the drawdowns tool.
Volatility
FALN vs. FLOT - Volatility Comparison
iShares Fallen Angels USD Bond ETF (FALN) has a higher volatility of 1.66% compared to iShares Floating Rate Bond ETF (FLOT) at 0.15%. This indicates that FALN's price experiences larger fluctuations and is considered to be riskier than FLOT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.