CSWC vs. USFR

Last updated Jun 5, 2026

CSWC (Capital Southwest Corporation) is a stock, while USFR (WisdomTree Floating Rate Treasury Fund) is Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index. Over the past 10 years, CSWC returned 17.33%/yr vs 2.47%/yr for USFR. At a correlation of -0.03, they often move in opposite directions.

Performance

CSWC vs. USFR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Southwest Corporation (CSWC) and WisdomTree Floating Rate Treasury Fund (USFR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CSWC achieves a 11.18% return, which is significantly higher than USFR's 1.60% return. Over the past 10 years, CSWC has outperformed USFR with an annualized return of 17.33%, while USFR has yielded a comparatively lower 2.47% annualized return.

CSWC

• 1D: 1.64%
• 1M: -2.30%
• YTD: 11.18%
• 6M: 13.90%
• 1Y: 29.37%
• 3Y*: 21.12%
• 5Y*: 8.98%
• 10Y*: 17.33%

USFR

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.60%
• 6M: 1.96%
• 1Y: 4.01%
• 3Y*: 4.76%
• 5Y*: 3.66%
• 10Y*: 2.47%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CSWC vs. USFR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CSWC Capital Southwest Corporation	11.18%	14.28%	2.14%	56.10%	-24.63%	57.40%	-1.56%	22.80%	29.52%	9.99%
USFR WisdomTree Floating Rate Treasury Fund	1.60%	4.23%	5.47%	5.18%	1.98%	-0.03%	0.56%	2.02%	2.01%	1.03%

Correlation

The correlation between CSWC and USFR is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.09
Correlation (3Y) Calculated over the trailing 3-year period	-0.04
Correlation (5Y) Calculated over the trailing 5-year period	-0.05
Correlation (10Y) Calculated over the trailing 10-year period	-0.04
Correlation (All Time) Calculated using the full available price history since Feb 5, 2014	-0.03

Return for Risk

CSWC vs. USFR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CSWC

CSWC Risk / Return Rank: 78
CSWC Sharpe Ratio Rank: 83
CSWC Sortino Ratio Rank: 79
CSWC Omega Ratio Rank: 76
CSWC Calmar Ratio Rank: 74
CSWC Martin Ratio Rank: 79

USFR

USFR Risk / Return Rank: 100
USFR Sharpe Ratio Rank: 100
USFR Sortino Ratio Rank: 100
USFR Omega Ratio Rank: 100
USFR Calmar Ratio Rank: 100
USFR Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CSWC vs. USFR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Southwest Corporation (CSWC) and WisdomTree Floating Rate Treasury Fund (USFR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CSWC	USFR	Difference
Sharpe ratio: Return per unit of total volatility	1.56	15.01	-13.46
Sortino ratio: Return per unit of downside risk	2.26	50.39	-48.12
Omega ratio: Gain probability vs. loss probability	1.27	13.37	-12.10
Calmar ratio: Return relative to maximum drawdown	1.87	202.38	-200.50
Martin ratio: Return relative to average drawdown	6.05	783.80	-777.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CSWC vs. USFR - Sharpe Ratio Comparison

The current CSWC Sharpe Ratio is 1.56, which is lower than the USFR Sharpe Ratio of 15.01. The chart below compares the historical Sharpe Ratios of CSWC and USFR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CSWC	USFR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.56	15.01	-13.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	9.25	-8.86
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	3.07	-2.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	1.60	-1.21

Drawdowns

CSWC vs. USFR - Drawdown Comparison

The maximum CSWC drawdown since its inception was -68.33%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for CSWC and USFR.

Drawdown Indicators

	CSWC	USFR	Difference
Max Drawdown Largest peak-to-trough decline	-68.33%	-1.36%	-66.97%
Max Drawdown (1Y) Largest decline over 1 year	-15.75%	-0.02%	-15.73%
Max Drawdown (3Y) Largest decline over 3 years	-27.74%	-0.06%	-27.68%
Max Drawdown (5Y) Largest decline over 5 years	-33.66%	-0.18%	-33.48%
Max Drawdown (10Y) Largest decline over 10 years	-61.15%	-0.80%	-60.35%
Current Drawdown Current decline from peak	-2.30%	0.00%	-2.30%
Average Drawdown Average peak-to-trough decline	-18.36%	-0.16%	-18.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.87%	0.01%	+4.86%

Volatility

CSWC vs. USFR - Volatility Comparison

Capital Southwest Corporation (CSWC) has a higher volatility of 5.43% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.06%. This indicates that CSWC's price experiences larger fluctuations and is considered to be riskier than USFR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CSWC	USFR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.43%	0.06%	+5.37%
Volatility (6M) Calculated over the trailing 6-month period	14.05%	0.18%	+13.87%
Volatility (1Y) Calculated over the trailing 1-year period	18.96%	0.27%	+18.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.66%	0.40%	+22.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.39%	0.81%	+26.58%

Dividends

CSWC vs. USFR - Dividend Comparison

CSWC's dividend yield for the trailing twelve months is around 12.52%, more than USFR's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CSWC Capital Southwest Corporation	12.52%	11.56%	11.59%	10.21%	12.46%	10.13%	11.49%	13.07%	10.77%	7.01%	2.35%	216.86%
USFR WisdomTree Floating Rate Treasury Fund	3.91%	4.15%	5.17%	5.12%	1.78%	0.01%	0.40%	2.08%	1.67%	1.03%	0.29%	0.00%

Frequently Asked Questions

Can I hold both CSWC and USFR in my portfolio?

CSWC and USFR have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CSWC or USFR?

CSWC has higher volatility (5.43%) compared to USFR (0.06%). In terms of maximum drawdown, CSWC dropped -68.33% vs USFR's -1.36%.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (15.01 vs 1.56), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.