At a glance
USFR charges 0.15% a year, above the 0.12% average of the 7 funds most like it (the 4th cheapest of 8). It has $18.76B in assets, the 6th largest of that group; it paid 3.71% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.1% with distributions reinvested, the best of those 8 funds; over three years it returned +4.6% a year. At its worst it fell 0.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month after the low.
The short version
WisdomTree Floating Rate Treasury Fund (USFR) is an index ETF that holds U.S. Treasury floating rate notes. These are government bonds whose interest rate moves with the weekly 13-week Treasury bill auction. Because the rate keeps adjusting, the fund's price barely moves: its deepest drop between June 2020 and October 29, 2026 was 0.4%. It charges 0.15% a year, the same as iShares' TFLO but above the 0.12% average for similar funds.
Price history
The interactive chart needs JavaScript.
USFR +4.1% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| USFR official prospectus, to Dec 31, 2024 | — | +5.40% | — | +2.59% | +1.84% | — |
| Bloomberg U.S. Treasury Floating Rate Bond Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +5.60% | — | +2.77% | +2.01% | — |
| Index10 index, same period | — | +1.25% | — | -0.33% | +1.35% | — |
| USFR price data to Nov 2, 2026 | +3.3% | +4.1% | +4.6% | +4.1% | — | +3.2% |
- Over the year to Nov 2, 2026, USFR returned +4.1%, 1st of 8 among similar funds.
- Its 5-year annualized return was +4.1%.
- Its worst full calendar year was 2021 (0.0%); its best was 2024 (+5.5%).
- The deepest fall in its price history was 0.4% (Jul 23, 2024 to Jul 25, 2024), recovered by Jul 26, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.4% | — |
| 2025 | +4.2% | — |
| 2024 | +5.5% | +5.40% |
| 2023 | +5.3% | +5.26% |
| 2022 | +2.0% | +1.88% |
| 2021 | 0.0% | +0.01% |
| 2020 | — | +0.52% |
| 2019 | — | +2.10% |
| 2018 | — | +1.80% |
| 2017 | — | +1.03% |
| 2016 | — | +0.61% |
| 2015 | — | -0.08% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 1.1% over that stretch · deepest drop along the way 0.2% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5600 | |
| 2025 | $2.0900 | -20.5% |
| 2024 | $2.6300 | +0.8% |
| 2023 | $2.6100 | +189.2% |
| 2022 | $0.9026 | +3929.5% |
| 2021 | $0.0224 |
Living on USFR: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 4 securities; the ten largest made up 99.66% of assets.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 27.94% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 27.91% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 27.91% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 15.90% |
By country
United States 99.66%By issuer
US Treasury 99.66%The bonds mature in 1.5 years on average (weighted by size), with an average coupon of 3.83%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $1.76B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.34%, +0.34%, +0.32%.
How it works
USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index. The index holds floating rate notes (FRNs), which are Treasury bonds whose interest rate adjusts instead of staying fixed. Each note's weight depends on how much of it is outstanding. To be included, a note needs at least $1 billion outstanding. The index leaves out fixed-rate Treasuries and inflation-protected Treasuries (TIPS). It rebalances on the last business day of each month. The fund doesn't have to buy every note in the index. Instead it uses representative sampling, holding a group of notes that behaves like the whole index. It keeps at least 80% of its assets in index securities or close equivalents.
An FRN's interest rate has two parts. The first follows the rate set at the most recent weekly 13-week T-bill auction. The second is a fixed extra amount, called the spread, set when the note is first sold. The rate resets daily based on that weekly auction rate, so prices move much less than fixed-rate bonds do. Values can still slip if market rates rise faster than the notes reset. Income also falls when T-bill rates fall. The notes pay interest every three months, but the fund pays distributions monthly.
As of May 31, 2026, the fund held just four notes, maturing between July 2027 and April 2028. Three were about 28% of assets each and the fourth about 16%. The fund is non-diversified, and it traded 159% of its portfolio in a year (its turnover rate).
What it really costs
- USFR charges 0.15% a year, versus an average of 0.12% for the similar funds below (4th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| USFR | $15 | $48 | $85 | $192 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds only U.S. Treasury floating rate notes, so its price has barely moved even when stocks fell sharply.
USFR may serve as a low-volatility reserve for money needed within a few years. It launched in 2014, so it has no 2008 record. The prospectus shows a 0.52% return for calendar 2020, the year of the COVID crash. In the 2022 bear market, from the stock market's January peak to its October low, the fund gained 1.1%. Its deepest dip in that stretch was 0.2%, and it recovered in under a month. Its largest drop between June 2020 and October 29, 2026 was 0.4%, in July 2024, recovered within days.
For someone drawing income, that steadiness has meant shares could be sold in a bad year without a deep loss. The trade-off is income. It follows T-bill rates and shrinks when they fall: 2021 returned about 0%. The trailing 12-month yield was 3.71% as of October 29, 2026. The fund pays monthly and has a 0.15% expense ratio. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees holding money for near-term spending: one-year price volatility was 0.3% as of October 29, 2026, with a deepest drop of 0.4% from June 2020 through October 29, 2026.
- Investors wanting monthly income that rises when short-term rates rise, paid only from U.S. Treasury floating rate notes.
- Savers wanting Treasury exposure with little interest-rate risk: rates reset based on the weekly T-bill auction, and average maturity was 1.5 years.
Look elsewhere if
- Investors seeking long-term growth: the fund's 10-year average annual return was 1.84% through December 31, 2024.
- Those wanting to lock in a yield: income falls when T-bill rates fall, unlike fixed-rate funds such as VGSH.
- Cost-focused buyers: the 0.15% expense ratio is above the 0.12% peer average, and SGOV charges 0.09%.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| USFR this fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| TFLO iShares Treasury Floating Rate Bond ETF | 1.1 yrs | 0.15% | $6.70B | +4.0% | +4.5% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
| BIL SPDR Bloomberg 1-3 Month T-Bill ETF | 0.2 yrs | 0.1356% | $47.08B | +3.3% | +4.3% |
| SGOV iShares 0-3 Month Treasury Bond ETF | 0.1 yrs | 0.09% | $105.98B | +3.4% | +4.4% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
Compared head to head: SGOV vs USFR · all comparisons →
Questions investors ask
Is USFR safe for parking cash in retirement?
It has behaved like cash, but it isn't a bank account and it isn't insured. It holds only U.S. Treasury floating rate notes. Its deepest drop between June 2020 and October 29, 2026 was 0.4%, and it recovered within days. Its weakest year in the prospectus was 2015, at -0.08%. The prospectus warns that you can lose money. Income also falls when T-bill rates fall.
What's the difference between USFR and TFLO?
Very little in approach. Both hold U.S. Treasury floating rate notes and charge 0.15% a year. USFR had about $17 billion in net assets as of May 31, 2026, compared with TFLO's $6.7 billion as of July 31, 2026. USFR's average maturity was 1.5 years, against 1.1 for TFLO. USFR's one-year return was 4.1% as of October 29, 2026. TFLO's was 4.0% as of October 27, 2026.
Does USFR pay monthly dividends?
Yes. USFR pays distributions monthly, even though the notes it holds pay interest every three months. It paid $1.87 per share over the 12 months to October 29, 2026, a trailing yield of 3.71%. The payout isn't fixed. It moves with 13-week Treasury bill rates, so it rises when short-term rates rise and falls when they drop. Returns were close to zero in 2021, when short-term rates were very low.
Can USFR lose money when interest rates rise?
Only slightly, based on its history. Floating rate notes reset based on the weekly T-bill auction, so they react far less to rate changes than fixed-rate bonds. Values can still dip if rates rise faster than the notes reset. In 2022, as rates climbed and stocks fell, the fund's deepest dip was 0.2%. It recovered in under a month, and the fund returned 1.88% for that calendar year.
USFR vs SGOV: which is cheaper and which returned more?
SGOV is cheaper, and USFR returned more over the periods shown. SGOV charges 0.09% a year and holds Treasury bills with an average maturity of 0.1 years. USFR charges 0.15% and held floating rate notes averaging 1.5 years. As of October 29, 2026, USFR returned 4.1% over one year and 4.6% a year over three years. SGOV returned 3.7% and 4.5%. Both pay income that follows short-term rates.