iShares Floating Rate Loan Active ETF

Bank loans that float with short-term interest rates are what BRLN collects, and BlackRock manages the fund actively rather than pinning it to an index. These are senior secured loans made to companies, mostly below investment grade, whose coupons reset as rates move, so the fund's income climbs when the Fed raises rates and its price carries little duration risk. That combination made floating-rate loan funds popular during the 2022-2023 rate-hiking cycle, when fixed-rate bonds were falling. The tradeoff is credit risk: the borrowers are leveraged companies that can default, and the loan market is less liquid than Treasuries. BlackRock's team picks loans of varying quality from around the world, aiming for current income plus some capital appreciation. Income investors and those bracing for higher rates use it as a floating-rate complement to a traditional bond sleeve. It launched in 2022.

On MyRWA, BRLN trades tokenized across 1 on-chain venue - see the listings below.