USML vs. USFR
USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) and USFR (WisdomTree Floating Rate Treasury Fund) are both exchange-traded funds - USML is a Leveraged Equities fund tracking the MSCI USA Minimum Volatility Index, while USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index. Both are passively managed. Over the past 5 years, USML returned 7.17%/yr vs 3.71%/yr for USFR. At a correlation of -0.01, they often move in opposite directions. USML charges 0.95%/yr vs 0.15%/yr for USFR.
Performance
USML vs. USFR - Performance Comparison
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Returns By Period
In the year-to-date period, USML achieves a -0.53% return, which is significantly lower than USFR's 1.82% return.
USML
- 1D
- 0.60%
- 1M
- -4.40%
- YTD
- -0.53%
- 6M
- -1.84%
- 1Y
- 1.32%
- 3Y*
- 14.47%
- 5Y*
- 7.17%
- 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%
USML vs. USFR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN | -0.53% | 9.33% | 23.97% | 11.37% | -22.87% | 42.12% |
USFR WisdomTree Floating Rate Treasury Fund | 1.82% | 4.23% | 5.47% | 5.18% | 1.98% | -0.03% |
Correlation
The correlation between USML and USFR is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2021 | -0.01 |
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Return for Risk
USML vs. USFR — Risk / Return Rank
USML
USFR
USML vs. USFR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) 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.
| USML | USFR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -14.59 | ||
| Sortino ratioReturn per unit of downside risk | -49.91 | ||
| Omega ratioGain probability vs. loss probability | 1.03 | 13.31 | -12.28 |
| Calmar ratioReturn relative to maximum drawdown | 0.10 | 201.33 | -201.23 |
| Martin ratioReturn relative to average drawdown | 0.29 | 779.76 | -779.47 |
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Drawdowns
USML vs. USFR - Drawdown Comparison
The maximum USML drawdown since its inception was -35.34%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for USML and USFR.
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Drawdown Indicators
| USML | USFR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.34% | -1.36% | -33.98% |
Max Drawdown (1Y)Largest decline over 1 year | -13.09% | -0.02% | -13.07% |
Max Drawdown (3Y)Largest decline over 3 years | -19.14% | -0.06% | -19.08% |
Max Drawdown (5Y)Largest decline over 5 years | -35.34% | -0.18% | -35.16% |
Max Drawdown (10Y)Largest decline over 10 years | — | -0.80% | — |
Current DrawdownCurrent decline from peak | -6.96% | 0.00% | -6.96% |
Average DrawdownAverage peak-to-trough decline | -10.36% | -0.15% | -10.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.50% | 0.01% | +4.49% |
Volatility
USML vs. USFR - Volatility Comparison
ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) has a higher volatility of 4.79% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.09%. This indicates that USML'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.
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Volatility by Period
| USML | USFR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.79% | 0.09% | +4.70% |
Volatility (6M)Calculated over the trailing 6-month period | 11.79% | 0.19% | +11.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.52% | 0.27% | +16.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.47% | 0.40% | +24.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.22% | 0.78% | +23.44% |
USML vs. USFR - Expense Ratio Comparison
USML has a 0.95% expense ratio, which is higher than USFR's 0.15% expense ratio.
Dividends
USML vs. USFR - Dividend Comparison
USML has not paid dividends to shareholders, while USFR's dividend yield for the trailing twelve months is around 3.90%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
USML and USFR have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USML has higher volatility (4.79%) compared to USFR (0.09%). In terms of maximum drawdown, USML dropped -35.34% vs USFR's -1.36%.
On 5-year performance, USML leads with 7.17% vs 3.71% 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.
Over the 5-year period, USML has performed better with a 7.17% return vs 3.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USFR is cheaper with a 0.15% expense ratio, compared with 0.95% for USML.
USFR has the higher dividend yield at 3.90%, compared with 0.00% for USML.
USML is categorized as Leveraged Equities, while USFR is Government Bonds. USML tracks MSCI USA Minimum Volatility Index, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index. They also come from different issuers: UBS and WisdomTree. Their fees differ too: 0.95% for USML and 0.15% for USFR.
USFR currently has the higher Sharpe Ratio (14.67 vs 0.08), 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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