FLOT vs. USFR
Compare and contrast key facts about iShares Floating Rate Bond ETF (FLOT) and WisdomTree Bloomberg Floating Rate Treasury Fund (USFR).
FLOT and USFR are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FLOT is a passively managed fund by iShares that tracks the performance of the Bloomberg US Floating Rate Notes (<5 Y). It was launched on Jun 14, 2011. USFR is a passively managed fund by WisdomTree that tracks the performance of the Bloomberg U.S. Treasury Floating Rate Bond Index. It was launched on Feb 4, 2014. Both FLOT and USFR are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FLOT or USFR.
Key characteristics
| FLOT | USFR | |
|---|---|---|
| YTD Return | 5.76% | 4.73% |
| 1Y Return | 6.61% | 5.32% |
| 3Y Return (Ann) | 4.45% | 3.95% |
| 5Y Return (Ann) | 3.00% | 2.51% |
| 10Y Return (Ann) | 2.34% | 2.38% |
| Sharpe Ratio | 8.20 | 14.85 |
| Sortino Ratio | 15.02 | 54.03 |
| Omega Ratio | 4.57 | 13.16 |
| Calmar Ratio | 15.02 | 88.94 |
| Martin Ratio | 162.39 | 757.73 |
| Ulcer Index | 0.04% | 0.01% |
| Daily Std Dev | 0.81% | 0.36% |
| Max Drawdown | -13.54% | -1.36% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between FLOT and USFR is 0.04, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
FLOT vs. USFR - Performance Comparison
In the year-to-date period, FLOT achieves a 5.76% return, which is significantly higher than USFR's 4.73% return. Both investments have delivered pretty close results over the past 10 years, with FLOT having a 2.34% annualized return and USFR not far ahead at 2.38%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FLOT vs. USFR - Expense Ratio Comparison
FLOT has a 0.20% expense ratio, which is higher than USFR's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
FLOT vs. USFR - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) and WisdomTree Bloomberg 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.
Dividends
FLOT vs. USFR - Dividend Comparison
FLOT's dividend yield for the trailing twelve months is around 5.92%, more than USFR's 5.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 5.92% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.45% | 0.97% | 0.53% | 0.44% | 0.48% |
USFR WisdomTree Bloomberg Floating Rate Treasury Fund | 5.30% | 5.12% | 1.78% | 0.01% | 0.40% | 2.08% | 1.67% | 1.04% | 0.29% | 0.00% | 0.00% | 0.00% |
Drawdowns
FLOT vs. USFR - Drawdown Comparison
The maximum FLOT drawdown since its inception was -13.54%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for FLOT and USFR. For additional features, visit the drawdowns tool.
Volatility
FLOT vs. USFR - Volatility Comparison
iShares Floating Rate Bond ETF (FLOT) has a higher volatility of 0.41% compared to WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) at 0.10%. This indicates that FLOT'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.