USFR vs. LQD
USFR (WisdomTree Floating Rate Treasury Fund) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, USFR returned 2.50%/yr vs 2.11%/yr for LQD. At a correlation of -0.01, they often move in opposite directions. Both charge a 0.15% expense ratio.
Performance
USFR vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, USFR achieves a 2.11% return, which is significantly higher than LQD's -0.83% return. Over the past 10 years, USFR has outperformed LQD with an annualized return of 2.50%, while LQD has yielded a comparatively lower 2.11% annualized return.
USFR
- 1D
- -0.02%
- 1M
- 0.32%
- 6M
- 1.88%
- YTD
- 2.11%
- 1Y
- 3.93%
- 3Y*
- 4.69%
- 5Y*
- 3.77%
- 10Y*
- 2.50%
- ALL TIME*
- 1.97%
LQD
- 1D
- -0.28%
- 1M
- -1.69%
- 6M
- -0.57%
- YTD
- -0.83%
- 1Y
- 2.81%
- 3Y*
- 4.18%
- 5Y*
- -0.89%
- 10Y*
- 2.11%
- ALL TIME*
- 4.38%
USFR vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USFR WisdomTree Floating Rate Treasury Fund | 2.11% | 4.23% | 5.47% | 5.18% | 1.98% | -0.03% | 0.56% | 2.02% | 2.01% | 1.03% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.83% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between USFR and LQD is -0.13, 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 | -0.13 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.10 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.02 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2014 | -0.01 |
The correlation between USFR and LQD shifts across timeframes, from -0.13 (1 year) to -0.01 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
USFR vs. LQD — Risk / Return Rank
USFR
LQD
USFR vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Floating Rate Treasury Fund (USFR) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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 | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +14.02 | ||
| Sortino ratioReturn per unit of downside risk | +48.66 | ||
| Omega ratioGain probability vs. loss probability | 13.14 | 1.09 | +12.05 |
| Calmar ratioReturn relative to maximum drawdown | 198.54 | 0.84 | +197.70 |
| Martin ratioReturn relative to average drawdown | 769.09 | 2.24 | +766.85 |
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Drawdowns
USFR vs. LQD - Drawdown Comparison
The maximum USFR drawdown since its inception was -1.36%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for USFR and LQD.
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Drawdown Indicators
| USFR | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.36% | -24.95% | +23.59% |
Max Drawdown (1Y)Largest decline over 1 year | -0.02% | -3.34% | +3.32% |
Max Drawdown (3Y)Largest decline over 3 years | -0.06% | -8.15% | +8.09% |
Max Drawdown (5Y)Largest decline over 5 years | -0.18% | -24.95% | +24.77% |
Max Drawdown (10Y)Largest decline over 10 years | -0.80% | -24.95% | +24.15% |
Current DrawdownCurrent decline from peak | -0.02% | -4.95% | +4.93% |
Average DrawdownAverage peak-to-trough decline | -0.15% | -3.99% | +3.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.01% | 1.26% | -1.25% |
Volatility
USFR vs. LQD - Volatility Comparison
The current volatility for WisdomTree Floating Rate Treasury Fund (USFR) is 0.08%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.39%. This indicates that USFR experiences smaller price fluctuations and is considered to be less risky than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USFR | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.08% | 1.39% | -1.31% |
Volatility (6M)Calculated over the trailing 6-month period | 0.19% | 4.09% | -3.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.27% | 5.30% | -5.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.39% | 8.65% | -8.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.77% | 8.69% | -7.92% |
USFR vs. LQD - Expense Ratio Comparison
Both USFR and LQD 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
USFR vs. LQD - Dividend Comparison
USFR's dividend yield for the trailing twelve months is around 3.83%, less than LQD's 4.63% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.63% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
USFR WisdomTree Floating Rate Treasury Fund | 3.83% | 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
USFR and LQD have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.39%) compared to USFR (0.08%). In terms of maximum drawdown, USFR dropped -1.36% vs LQD's -24.95%.
On 10-year performance, USFR leads with 2.50% vs 2.11% for LQD. Both ETFs have the same 0.15% expense ratio. On volatility, USFR has been the lower-risk option at 0.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USFR has performed better with a 2.50% return vs 2.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USFR and LQD have the same expense ratio: 0.15% per year.
LQD has the higher dividend yield at 4.63%, compared with 3.83% for USFR.
USFR is categorized as Government Bonds, while LQD is Corporate Bonds. USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: WisdomTree and iShares.
USFR currently has the higher Sharpe Ratio (14.55 vs 0.53), 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.
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