Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: FLOT is ratedTier 1 (Cornerstone)while UTF is ratedTier 3 (Specialty).FLOT is structurally lower risk than UTF.
| Metric | FLOT | UTF |
|---|---|---|
| Total Return (1Y) | 4.57% | 8.38% |
| NAV Change (1Y) | -0.20% | 1.18% |
| Max Drawdown | -1.94% | -16.49% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
FLOT (iShares Floating Rate Bond ETF) is a conservative dividend growth fund managed by iShares. It focuses on generating income through strategic holdings. With $9.0B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
UTF (Cohen & Steers Infrastructure Fund, Inc) is a sector-specific income fund managed by Cohen & Steers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of FLOT vs UTF, the choice depends on your specific goal. UTF wins for Immediate Income with a 7.20% yield. However, UTF is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
FLOT
Annual Yield: 4.77%
$398/mo
($4,773/year)
Frequency: monthly
UTF
Annual Yield: 7.20%
$600/mo
($7,195/year)
Frequency: monthly
Income Gap: UTF generates $2,423/year more than FLOT on the same $100k investment.
Over 20 years, that's $48,453 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. UTF has delivered a superior Total Return of 8.38% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
FLOT (More Resilient)
Max Drawdown: -1.94%
-$1,940
Worst unrealized loss
UTF (More Volatile)
Max Drawdown: -16.49%
-$16,490
Worst unrealized loss
Protection Value: FLOT saved investors $14,550 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: FLOT demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.