About T. Rowe Price Exchange-Traded Funds, Inc. T. Rowe Price Floating Rate ETF (TFLR)

T. Rowe Price Exchange-Traded Funds, Inc. offers the T. Rowe Price Floating Rate ETF (TFLR), which is designed to provide investors with exposure to floating rate securities. This ETF seeks to track the performance of the Bloomberg Barclays U.S. Floating Rate Note < 5 Years Index, which is made up of U.S. dollar-denominated, investment-grade floating rate notes with remaining maturities of less than five years. Floating rate notes are debt securities that have variable coupon rates that reset periodically based on changes in an underlying reference rate, such as the U.S. dollar Libor rate.

The T. Rowe Price Floating Rate ETF aims to provide investors with a source of income that can adjust to changes in interest rates. The floating rate feature of the underlying securities helps to mitigate interest rate risk, as the coupon payments increase when interest rates rise. This can potentially provide a hedge against inflation and rising interest rates. The ETF also seeks to provide investors with a low duration profile, which means it has less sensitivity to changes in interest rates compared to fixed rate bonds with longer durations.