Taking advantage of higher interest rates
Jun 15, 2023
Keeping up with higher interest rates
Over the past 18 months, we have experienced the fastest pace of interest rate increases since the 1980s and elevated market uncertainty. In response, many investors are currently looking for low-risk, income-oriented investments that are not subject to the ups and downs of the stock market. Both cash-like investments and high-quality floating-rate bonds fit that description and are especially worth considering with interest rates at a 15-year high.
With daily liquidity, no redemption fees* and no redemption restrictions, iShares Premium Money Market ETF (CMR) and iShares Floating Rate Index ETF (XFR) are two options that allow you to earn attractive levels of income, help protect your portfolio, and provide you the flexibility to access to your investment as you need it.
Why consider CMR and XFR?
| Name | iShares Premium Money Market ETF | iShares Floating Rate Index ETF |
| Ticker | CMR | XFR |
| Overview | Actively managed portfolio that invests in high-quality, short-term, securities issued by governments, banks, and other corporations. | Provides exposure to high-quality floating-rate notes. The interest paid by floating-rate notes adjusts as short-term interest rates change. Over 70% of the portfolio consists of AAA-rated government bonds. |
| Benefits | ✔ Low risk: high quality securities and with very low historic volatility ✔ Attractive income: monthly cash distributions which adjust over time as interest rates change ✔ Low cost: fees were recently lowered to just 0.12%, which is among the lowest in the industry ✔ Liquidity: flexibility to sell for cash on any trading day ✔ Professional active portfolio management LEARN MORE |
✔ Low risk: high quality securities and with very low historic volatility |
