Average Daily Volume
5.81M
Fund Overview
The WisdomTree Floating Rate Treasury Fund (USFR) is an ETF designed to provide investors with exposure to floating rate U.S. Treasury securities. The fund invests primarily in Treasury bills that have a variable interest rate, which adjusts periodically based on the prevailing market rates. This structure helps mitigate interest rate risk compared to fixed-rate bonds. USFR is ideal for investors seeking short-term, high-quality debt instruments with lower sensitivity to rising interest rates. The fund is passively managed and aims to track the Bloomberg U.S. Treasury Floating Rate Bond Index, offering a cost-efficient way to gain access to this segment of the market.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.22 %
- Currency Hedged
-
No
- Portfolio Turnover
-
157 %
- Dividend Date
-
Why Invest in the USFR ETF?
Potential Benefits
- Lower interest rate risk compared to fixed-rate bonds due to floating rate structure.
- Invests in high-quality U.S. Treasury securities, minimizing credit risk.
- Provides liquidity and short-term income potential in a rising rate environment.
- Passively managed with a low expense ratio, making it cost-effective for investors.
- Diversifies a fixed-income portfolio by adding floating rate exposure.
Potential Risks
- Returns may lag during periods of declining interest rates.
- Limited yield potential compared to longer-duration or higher-risk bonds.
- Subject to reinvestment risk if rates fall and securities mature at lower yields.
- Still exposed to U.S. Treasury market fluctuations and macroeconomic factors.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.4%
|
+0.3%
|
+0.3%
|
+0.3%
|
+0.3%
|
+0.3%
|
+0.4%
|
+0.3%
|
+0.3%
|
0.0%
|
-
|
-
|
| 2025 |
+0.4%
|
+0.3%
|
+0.3%
|
+0.3%
|
+0.4%
|
+0.4%
|
+0.4%
|
+0.3%
|
+0.3%
|
+0.4%
|
+0.3%
|
+0.4%
|
| 2024 |
+0.5%
|
+0.5%
|
+0.4%
|
+0.5%
|
+0.5%
|
+0.4%
|
+0.4%
|
+0.4%
|
+0.3%
|
+0.5%
|
+0.5%
|
+0.4%
|
| 2023 |
+0.4%
|
+0.4%
|
+0.4%
|
+0.5%
|
+0.5%
|
+0.4%
|
+0.5%
|
+0.4%
|
+0.4%
|
+0.4%
|
+0.5%
|
+0.3%
|
| 2022 |
+0.2%
|
0.0%
|
+0.1%
|
+0.2%
|
0.0%
|
+0.1%
|
0.0%
|
+0.2%
|
+0.3%
|
+0.2%
|
+0.3%
|
+0.4%
|
| 2021 |
0.0%
|
0.0%
|
0.0%
|
+0.1%
|
-0.1%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
-0.1%
|
| 2020 |
+0.3%
|
+0.1%
|
+0.1%
|
+0.1%
|
0.0%
|
+0.1%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
-0.1%
|
0.0%
|
| 2019 |
+0.2%
|
+0.2%
|
+0.1%
|
+0.3%
|
+0.2%
|
+0.1%
|
+0.2%
|
+0.1%
|
+0.1%
|
+0.2%
|
+0.2%
|
+0.1%
|
| 2018 |
+0.2%
|
+0.2%
|
+0.3%
|
0.0%
|
+0.2%
|
+0.1%
|
+0.1%
|
+0.2%
|
+0.2%
|
+0.2%
|
+0.3%
|
+0.1%
|
| 2017 |
0.0%
|
+0.2%
|
0.0%
|
0.0%
|
+0.3%
|
+0.1%
|
+0.1%
|
-0.2%
|
+0.3%
|
+0.2%
|
+0.1%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: USFR vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
USFR seeks to track the Bloomberg U.S. Treasury Floating Rate Bond Index, which consists of floating rate Treasury notes. These securities have interest payments that reset periodically based on the most recent 13-week Treasury bill auction. The fund employs a passive management approach, aiming to replicate the index's performance rather than outperform it. Holdings are primarily the most recently issued floating rate notes, which typically mature within two years. The portfolio is rebalanced monthly to maintain alignment with the index composition. This strategy provides consistent exposure to the floating rate Treasury market while minimizing turnover costs.
Frequently Asked Questions
How often do USFR's interest payments adjust?
USFR's underlying securities reset their interest rates weekly, based on the most recent 13-week Treasury bill auction results.
Is USFR a good hedge against inflation?
While not a direct inflation hedge, USFR's floating rate structure helps protect against rising interest rates that often accompany inflation, making it potentially useful in inflationary environments.
What's the difference between USFR and money market funds?
USFR invests in floating rate Treasury notes with slightly longer maturities than typical money market funds, offering potentially higher yields while maintaining high credit quality.
Does USFR pay monthly dividends?
Yes, USFR distributes income to shareholders monthly, reflecting the accrued interest from its floating rate Treasury holdings.
Industry Overview
The USFR ETF operates within the short-term fixed-income market, specifically focusing on floating rate U.S. Treasury securities. This segment has gained popularity among investors seeking to reduce interest rate sensitivity while maintaining exposure to high-quality government debt. Floating rate notes adjust their coupon payments based on prevailing market rates, making them particularly attractive in rising rate environments. The USFR provides access to this niche while benefiting from the liquidity and credit quality of Treasury securities. As part of the broader fixed-income ETF universe, USFR offers a specialized tool for investors looking to fine-tune their portfolio's interest rate risk profile.
Alternative Comparison
Compared to similar floating rate ETFs like TFLO and FLOT, USFR distinguishes itself by focusing exclusively on U.S. Treasury securities rather than including corporate floaters. This makes USFR's credit quality superior, though its yields may be slightly lower as a result. Unlike BIL or SGOV which invest in fixed-rate T-bills, USFR's floating rate structure provides better protection against rising rates. Among Treasury ETFs, USFR offers a unique combination of government credit quality with interest rate flexibility that's particularly valuable in tightening monetary policy environments.
Issuer Overview
WisdomTree is a well-established ETF issuer known for its innovative approach to index construction and product development. With expertise in both equity and fixed-income strategies, WisdomTree has built a reputation for creating cost-efficient, rules-based investment solutions. The firm manages a diverse lineup of ETFs spanning multiple asset classes and investment themes. WisdomTree's fixed-income ETFs, including USFR, are designed to provide targeted exposures while maintaining transparency and liquidity.
Conclusion
The USFR ETF provides a specialized tool for investors seeking to reduce interest rate risk while maintaining exposure to high-quality U.S. government debt. Its floating rate structure offers distinct advantages in rising rate environments compared to traditional fixed-rate short-term bond ETFs. While the fund may underperform during periods of declining rates, it serves as an effective portfolio diversifier and interest rate hedge. For investors looking to add short-term, rate-responsive Treasury exposure, USFR represents a compelling option within the fixed-income ETF universe.
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