QLTY vs. USFR

Last updated Jun 24, 2026

QLTY (GMO U.S. Quality ETF) and USFR (WisdomTree Floating Rate Treasury Fund) are both exchange-traded funds - QLTY is a Large Cap Blend Equities fund tracking the S&P 500, while USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index. Both are passively managed. Over the past year, QLTY returned 23.44% vs 3.99% for USFR. At a correlation of -0.01, they often move in opposite directions. QLTY charges 0.50%/yr vs 0.15%/yr for USFR.

Performance

QLTY vs. USFR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GMO U.S. Quality ETF (QLTY) 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, QLTY achieves a 5.56% return, which is significantly higher than USFR's 1.82% return.

QLTY

• 1D: -0.98%
• 1M: -1.19%
• YTD: 5.56%
• 6M: 4.84%
• 1Y: 23.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

USFR

• 1D: 0.04%
• 1M: 0.33%
• YTD: 1.82%
• 6M: 1.92%
• 1Y: 3.99%
• 3Y*: 4.74%
• 5Y*: 3.71%
• 10Y*: 2.43%

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

QLTY vs. USFR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
QLTY GMO U.S. Quality ETF	5.56%	21.26%	21.02%	5.25%
USFR WisdomTree Floating Rate Treasury Fund	1.82%	4.23%	5.47%	0.56%

Correlation

The correlation between QLTY and USFR is -0.12, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.12
Correlation (All Time) Calculated using the full available price history since Nov 15, 2023	-0.01

The correlation between QLTY and USFR shifts across timeframes, from -0.12 (1 year) to -0.01 (all time), reflecting how their relationship changes across market environments.

Return for Risk

QLTY vs. USFR — Risk / Return Rank

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

QLTY

QLTY Risk / Return Rank: 53
QLTY Sharpe Ratio Rank: 59
QLTY Sortino Ratio Rank: 59
QLTY Omega Ratio Rank: 56
QLTY Calmar Ratio Rank: 43
QLTY Martin Ratio Rank: 51

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.

QLTY vs. USFR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO U.S. Quality ETF (QLTY) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QLTY	USFR	Difference
Sharpe ratio: Return per unit of total volatility	1.87	14.67	-12.81
Sortino ratio: Return per unit of downside risk	2.65	50.13	-47.48
Omega ratio: Gain probability vs. loss probability	1.33	13.31	-11.98
Calmar ratio: Return relative to maximum drawdown	2.01	201.33	-199.32
Martin ratio: Return relative to average drawdown	8.15	779.76	-771.61

QLTY vs. USFR - Sharpe Ratio Comparison

The current QLTY Sharpe Ratio is 1.87, which is lower than the USFR Sharpe Ratio of 14.67. The chart below compares the historical Sharpe Ratios of QLTY 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.

Drawdowns

QLTY vs. USFR - Drawdown Comparison

The maximum QLTY drawdown since its inception was -17.00%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for QLTY and USFR.

Drawdown Indicators

	QLTY	USFR	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-1.36%	-15.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.71%	-0.02%	-11.69%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.06%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-0.18%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-0.80%	—
Current Drawdown Current decline from peak	-2.89%	0.00%	-2.89%
Average Drawdown Average peak-to-trough decline	-2.04%	-0.15%	-1.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.88%	0.01%	+2.87%

Volatility

QLTY vs. USFR - Volatility Comparison

GMO U.S. Quality ETF (QLTY) has a higher volatility of 4.05% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.09%. This indicates that QLTY'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

	QLTY	USFR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	0.09%	+3.96%
Volatility (6M) Calculated over the trailing 6-month period	9.74%	0.19%	+9.55%
Volatility (1Y) Calculated over the trailing 1-year period	12.65%	0.27%	+12.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.68%	0.40%	+14.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.68%	0.78%	+13.90%

QLTY vs. USFR - Expense Ratio Comparison

QLTY has a 0.50% expense ratio, which is higher than USFR's 0.15% expense ratio.

Dividends

QLTY vs. USFR - Dividend Comparison

QLTY's dividend yield for the trailing twelve months is around 0.72%, less than USFR's 3.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
QLTY GMO U.S. Quality ETF	0.72%	0.73%	0.79%	0.15%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
USFR WisdomTree Floating Rate Treasury Fund	3.90%	4.15%	5.17%	5.12%	1.78%	0.01%	0.40%	2.08%	1.67%	1.03%	0.29%

Frequently Asked Questions

Can I hold both QLTY and USFR in my portfolio?

QLTY and USFR have a correlation of -0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLTY or USFR?

QLTY has higher volatility (4.05%) compared to USFR (0.09%). In terms of maximum drawdown, QLTY dropped -17.00% vs USFR's -1.36%.

Which ETF is better, QLTY or USFR?

On 1-year performance, QLTY leads with 23.44% vs 3.99% for USFR. On fees, USFR is cheaper at 0.15% per year. On volatility, USFR has been the lower-risk option at 0.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLTY or USFR?

Over the 1-year period, QLTY has performed better with a 23.44% return vs 3.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLTY or USFR?

USFR is cheaper with a 0.15% expense ratio, compared with 0.50% for QLTY.

Which ETF pays a higher dividend yield, QLTY or USFR?

USFR has the higher dividend yield at 3.90%, compared with 0.72% for QLTY.

What is the main difference between QLTY and USFR?

QLTY is categorized as Large Cap Blend Equities, while USFR is Government Bonds. QLTY tracks S&P 500, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index. They also come from different issuers: GMO and WisdomTree. Their fees differ too: 0.50% for QLTY and 0.15% for USFR.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (14.67 vs 1.87), 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.