UFIV vs. UTWO

Last updated Jun 4, 2026

UFIV (F/m US Treasury 5 Year Note ETF) and UTWO (US Treasury 2 Year Note ETF) are both Government Bonds funds from US Benchmark Series - UFIV tracks the ICE BofA Current 5-Year US Treasury Index - Benchmark TR Gross while UTWO tracks the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, UFIV returned 3.12%/yr vs 3.78%/yr for UTWO. Their correlation of 0.91 suggests significant overlap in exposure. Both charge a 0.15% expense ratio.

Performance

UFIV vs. UTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in F/m US Treasury 5 Year Note ETF (UFIV) and US Treasury 2 Year Note ETF (UTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UFIV achieves a -0.60% return, which is significantly lower than UTWO's 0.33% return.

UFIV

• 1D: -0.15%
• 1M: -0.24%
• YTD: -0.60%
• 6M: -0.75%
• 1Y: 2.93%
• 3Y*: 3.12%
• 5Y*: —
• 10Y*: —

UTWO

• 1D: -0.04%
• 1M: 0.07%
• YTD: 0.33%
• 6M: 0.63%
• 1Y: 3.13%
• 3Y*: 3.78%
• 5Y*: —
• 10Y*: —

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

UFIV vs. UTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
UFIV F/m US Treasury 5 Year Note ETF	-0.60%	6.89%	1.09%	1.58%
UTWO US Treasury 2 Year Note ETF	0.33%	4.79%	3.71%	2.10%

Correlation

The correlation between UFIV and UTWO is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (All Time) Calculated using the full available price history since Mar 29, 2023	0.91

The correlation between UFIV and UTWO has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

UFIV vs. UTWO — Risk / Return Rank

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

UFIV

UFIV Risk / Return Rank: 25
UFIV Sharpe Ratio Rank: 26
UFIV Sortino Ratio Rank: 26
UFIV Omega Ratio Rank: 24
UFIV Calmar Ratio Rank: 24
UFIV Martin Ratio Rank: 25

UTWO

UTWO Risk / Return Rank: 75
UTWO Sharpe Ratio Rank: 71
UTWO Sortino Ratio Rank: 85
UTWO Omega Ratio Rank: 79
UTWO Calmar Ratio Rank: 70
UTWO Martin Ratio Rank: 70

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.

UFIV vs. UTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for F/m US Treasury 5 Year Note ETF (UFIV) and US Treasury 2 Year Note ETF (UTWO). 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.

	UFIV	UTWO	Difference
Sharpe ratio: Return per unit of total volatility	0.92	2.33	-1.41
Sortino ratio: Return per unit of downside risk	1.39	3.84	-2.45
Omega ratio: Gain probability vs. loss probability	1.16	1.47	-0.32
Calmar ratio: Return relative to maximum drawdown	1.09	3.50	-2.41
Martin ratio: Return relative to average drawdown	3.26	12.89	-9.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UFIV vs. UTWO - Sharpe Ratio Comparison

The current UFIV Sharpe Ratio is 0.92, which is lower than the UTWO Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of UFIV and UTWO, 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

	UFIV	UTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.92	2.33	-1.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	1.45	-0.81

Drawdowns

UFIV vs. UTWO - Drawdown Comparison

The maximum UFIV drawdown since its inception was -5.63%, which is greater than UTWO's maximum drawdown of -2.04%. Use the drawdown chart below to compare losses from any high point for UFIV and UTWO.

Drawdown Indicators

	UFIV	UTWO	Difference
Max Drawdown Largest peak-to-trough decline	-5.63%	-2.04%	-3.59%
Max Drawdown (1Y) Largest decline over 1 year	-2.71%	-0.90%	-1.81%
Max Drawdown (3Y) Largest decline over 3 years	-4.03%	-1.08%	-2.95%
Current Drawdown Current decline from peak	-2.08%	-0.38%	-1.70%
Average Drawdown Average peak-to-trough decline	-1.56%	-0.49%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.24%	+0.66%

Volatility

UFIV vs. UTWO - Volatility Comparison

F/m US Treasury 5 Year Note ETF (UFIV) has a higher volatility of 1.00% compared to US Treasury 2 Year Note ETF (UTWO) at 0.36%. This indicates that UFIV's price experiences larger fluctuations and is considered to be riskier than UTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UFIV	UTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	0.36%	+0.64%
Volatility (6M) Calculated over the trailing 6-month period	2.24%	0.92%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	3.20%	1.35%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.38%	2.07%	+2.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.38%	2.07%	+2.31%

UFIV vs. UTWO - Expense Ratio Comparison

Both UFIV and UTWO have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

UFIV vs. UTWO - Dividend Comparison

UFIV's dividend yield for the trailing twelve months is around 3.57%, more than UTWO's 3.50% yield.

Position	TTM	2025	2024	2023	2022
UFIV F/m US Treasury 5 Year Note ETF	3.57%	3.66%	4.00%	2.96%	0.00%
UTWO US Treasury 2 Year Note ETF	3.50%	3.63%	4.22%	4.39%	1.22%

Frequently Asked Questions

Can I hold both UFIV and UTWO in my portfolio?

With a correlation of 0.93, UFIV and UTWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, UFIV or UTWO?

UFIV has higher volatility (1.00%) compared to UTWO (0.36%). In terms of maximum drawdown, UFIV dropped -5.63% vs UTWO's -2.04%.

Which ETF is better, UFIV or UTWO?

On 3-year performance, UTWO leads with 3.78% vs 3.12% for UFIV. Both ETFs have the same 0.15% expense ratio. On volatility, UTWO has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UFIV or UTWO?

Over the 3-year period, UTWO has performed better with a 3.78% return vs 3.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UFIV or UTWO?

UFIV and UTWO have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, UFIV or UTWO?

UFIV has the higher dividend yield at 3.57%, compared with 3.50% for UTWO.

What is the main difference between UFIV and UTWO?

UFIV tracks ICE BofA Current 5-Year US Treasury Index - Benchmark TR Gross, while UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross.

Which has better risk-adjusted returns?

UTWO currently has the higher Sharpe Ratio (2.33 vs 0.92), 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.