USFR vs. BNDD

Last updated Aug 5, 2026

USFR (WisdomTree Floating Rate Treasury Fund) and BNDD (Quadratic Deflation ETF) are both Government Bonds funds. USFR is passively managed, while BNDD is actively managed. Over the past 3 years, USFR returned 4.68%/yr vs -3.62%/yr for BNDD. Their -0.03 correlation means they have often moved in opposite directions in the past. USFR charges 0.15%/yr vs 1.02%/yr for BNDD.

Performance

USFR vs. BNDD - Performance Comparison

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

Returns By Period

In the year-to-date period, USFR achieves a 2.29% return, which is significantly lower than BNDD's 2.69% return.

USFR

• 1D: 0.00%
• 1M: 0.36%
• 6M: 1.89%
• YTD: 2.29%
• 1Y: 3.97%
• 3Y*: 4.68%
• 5Y*: 3.81%
• 10Y*: 2.48%
• ALL TIME*: 1.98%

BNDD

• 1D: 0.27%
• 1M: -3.64%
• 6M: 2.03%
• YTD: 2.69%
• 1Y: 0.67%
• 3Y*: -3.62%
• 5Y*: —
• 10Y*: —
• ALL TIME*: -4.53%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BNDD Quadratic Deflation ETF	$1.11M	$4.58M	$3.16M
USFR WisdomTree Floating Rate Treasury Fund	$352.79M	$265.75M	$249.59M

USFR vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
USFR WisdomTree Floating Rate Treasury Fund	2.29%	4.23%	5.47%	5.18%	1.98%	-0.07%
BNDD Quadratic Deflation ETF	2.69%	-8.17%	-6.65%	4.02%	-17.48%	5.63%

Correlation

The correlation between USFR and BNDD is -0.10, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.10
Correlation (3Y) Balances recent behavior with more history.	-0.09
Correlation (All Time) Calculated using the full available price history since Sep 21, 2021	-0.03

Return for Risk

USFR vs. BNDD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

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

BNDD

BNDD Risk / Return Rank: 11
BNDD Sharpe Ratio Rank: 11
BNDD Sortino Ratio Rank: 10
BNDD Omega Ratio Rank: 10
BNDD Calmar Ratio Rank: 12
BNDD Martin Ratio Rank: 12

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

USFR vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Floating Rate Treasury Fund (USFR) and Quadratic Deflation ETF (BNDD). 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.

	USFR	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	14.64	0.07	+14.58
Sortino ratio: Return per unit of downside risk	51.60	0.16	+51.44
Omega ratio: Gain probability vs. loss probability	14.07	1.02	+13.05
Calmar ratio: Return relative to maximum drawdown	200.37	0.11	+200.26
Martin ratio: Return relative to average drawdown	800.41	0.23	+800.18

USFR vs. BNDD - Sharpe Ratio Comparison

The current USFR Sharpe Ratio is 14.64, which is higher than the BNDD Sharpe Ratio of 0.07. The chart below compares the historical Sharpe Ratios of USFR and BNDD, 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

USFR vs. BNDD - Drawdown Comparison

The maximum USFR drawdown since its inception was -1.36%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for USFR and BNDD.

Drawdown Indicators

	USFR	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-1.36%	-30.87%	+29.51%
Max Drawdown (1Y) Largest decline over 1 year	-0.02%	-6.09%	+6.07%
Max Drawdown (3Y) Largest decline over 3 years	-0.06%	-17.70%	+17.64%
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	0.00%	-27.65%	+27.65%
Average Drawdown Average peak-to-trough decline	-0.15%	-19.55%	+19.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	2.91%	-2.91%

Volatility

USFR vs. BNDD - Volatility Comparison

The current volatility for WisdomTree Floating Rate Treasury Fund (USFR) is 0.09%, while Quadratic Deflation ETF (BNDD) has a volatility of 2.66%. This indicates that USFR experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USFR	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.09%	2.66%	-2.57%
Volatility (6M) Calculated over the trailing 6-month period	0.20%	6.90%	-6.70%
Volatility (1Y) Calculated over the trailing 1-year period	0.27%	10.26%	-9.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.39%	13.25%	-12.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.76%	13.25%	-12.49%

USFR vs. BNDD - Expense Ratio Comparison

USFR has a 0.15% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

USFR vs. BNDD - Dividend Comparison

USFR's dividend yield for the trailing twelve months is around 3.79%, more than BNDD's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BNDD Quadratic Deflation ETF	3.68%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%	0.00%	0.00%	0.00%
USFR WisdomTree Floating Rate Treasury Fund	3.79%	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 USFR and BNDD in my portfolio?

USFR and BNDD have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USFR or BNDD?

BNDD has higher volatility (2.66%) compared to USFR (0.09%). In terms of maximum drawdown, USFR dropped -1.36% vs BNDD's -30.87%.

Which ETF is better, USFR or BNDD?

On 3-year performance, USFR leads with 4.68% vs -3.62% for BNDD. 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, USFR or BNDD?

Over the 3-year period, USFR has performed better with a 4.68% return vs -3.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USFR or BNDD?

USFR is cheaper with a 0.15% expense ratio, compared with 1.02% for BNDD.

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

USFR has the higher dividend yield at 3.79%, compared with 3.68% for BNDD.

What is the main difference between USFR and BNDD?

They also come from different issuers: WisdomTree and KraneShares. Their fees differ too: 0.15% for USFR and 1.02% for BNDD.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (14.64 vs 0.07), 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.