FLTR vs SPSB

FLTR—VanEck IG Floating Rate ETF

SPSBAState Street SPDR Portfolio Short Term Corporate Bond ETF

In short

FLTR One of the first corporate floating-rate note ETFs to list, back in April 2011. Coupons reset periodically, so rate sensitivity stays minimal, and its index can hold notes maturing anywhere from 6 months out to 30 years.

SPSB The short end of the corporate bond market, bought wholesale: roughly 1,600 investment-grade corporate bonds maturing in one to three years, for four basis points. Built as a cash-adjacent building block, not a yield swing.

Stated mandate

FLTR The fund seeks to track the MVIS US Investment Grade Floating Rate Index before fees and expenses. The index comprises U.S.-dollar floating-rate notes from investment-grade corporate issuers.

SPSB The fund seeks to track the price and yield performance of the Bloomberg U.S. 1-3 Year Corporate Bond Index before fees and expenses.

Why people hold it

• FLTR Floating coupons reset periodically, so the portfolio carries little interest-rate duration while staying in investment-grade corporate credit.vaneck.com
• Index rules run wide: USD notes from investment-grade corporate issuers, at least $300 million outstanding, 6 months to 30 years to maturity.marketvector.com
• 0.14% a year, a shade under the typical fee in its short-duration IG corporate group, spread across about 400 notes with monthly distributions.
• Has tracked its named index closely, and sits in the top quartile of its short-duration investment-grade corporate peer group.

• SPSB Costs 0.04% a year against a 0.19% median for investment-grade corporate bond funds. At the short end, where yields are thin, that gap is a real slice of what you keep.
• Nothing in the index matures past three years, so rate moves push the price around less than they do at intermediate corporate funds like SPIB or VCIT.ssga.com
• Roughly 1,600 bonds, market-cap weighted, reconstituted at each month end, with a $300 million minimum issue size. Income arrives monthly.ssga.com
• Trading since 2009 and now a multi-billion-dollar fund that changes hands actively, one of the sturdier implementations in its peer group.

Worth knowing

• FLTR Rate duration is near zero, credit risk is not: these are corporate notes, and floating-rate issuance skews toward banks and financial firms.marketvector.com
• Plain short-term corporate funds cost far less (VCSH at 0.03%, IGSB at 0.04%), though they take on the rate duration this one sheds.
• Income floats. Coupons reset with short-term rates, so the monthly payout moves up and down with them.vaneck.com

• SPSB Pure corporate credit, no Treasury ballast. Investment-grade paper still reprices when spreads widen, short maturities or not.ssga.com
• Bonds roll off fast and get replaced at whatever the market pays, so the income stream follows prevailing rates in both directions.ssga.com
• The manager samples the index rather than buying every bond in it, so the portfolio can drift modestly from the benchmark.sec.gov

Full FLTR profile⁠

Full SPSB profile⁠