UTWO vs. UTRE

Last updated Jun 4, 2026

UTWO (US Treasury 2 Year Note ETF) and UTRE (US Treasury 3 Year Note ETF) are both Government Bonds funds from US Benchmark Series - UTWO tracks the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross while UTRE tracks the ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, UTWO returned 3.78%/yr vs 3.64%/yr for UTRE. With a 0.96 correlation, they move nearly in lockstep. Both charge a 0.15% expense ratio.

Performance

UTWO vs. UTRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 2 Year Note ETF (UTWO) and US Treasury 3 Year Note ETF (UTRE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UTWO achieves a 0.33% return, which is significantly higher than UTRE's -0.09% return.

UTWO

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

UTRE

• 1D: -0.08%
• 1M: -0.10%
• YTD: -0.09%
• 6M: 0.06%
• 1Y: 2.93%
• 3Y*: 3.64%
• 5Y*: —
• 10Y*: —

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

UTWO vs. UTRE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
UTWO US Treasury 2 Year Note ETF	0.33%	4.79%	3.71%	2.10%
UTRE US Treasury 3 Year Note ETF	-0.09%	5.68%	2.96%	2.16%

Correlation

The correlation between UTWO and UTRE is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 29, 2023	0.96

The correlation between UTWO and UTRE has been stable across timeframes, ranging from 0.96 to 0.96 - a consistent structural relationship.

Return for Risk

UTWO vs. UTRE — Risk / Return Rank

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

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

UTRE

UTRE Risk / Return Rank: 42
UTRE Sharpe Ratio Rank: 41
UTRE Sortino Ratio Rank: 46
UTRE Omega Ratio Rank: 41
UTRE Calmar Ratio Rank: 41
UTRE Martin Ratio Rank: 39

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.

UTWO vs. UTRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) and US Treasury 3 Year Note ETF (UTRE). 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.

	UTWO	UTRE	Difference
Sharpe ratio: Return per unit of total volatility	2.33	1.46	+0.87
Sortino ratio: Return per unit of downside risk	3.84	2.28	+1.56
Omega ratio: Gain probability vs. loss probability	1.47	1.27	+0.21
Calmar ratio: Return relative to maximum drawdown	3.50	2.05	+1.45
Martin ratio: Return relative to average drawdown	12.89	6.10	+6.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UTWO vs. UTRE - Sharpe Ratio Comparison

The current UTWO Sharpe Ratio is 2.33, which is higher than the UTRE Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of UTWO and UTRE, 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

	UTWO	UTRE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.33	1.46	+0.87
Sharpe Ratio (All Time) Calculated using the full available price history	1.45	1.25	+0.20

Drawdowns

UTWO vs. UTRE - Drawdown Comparison

The maximum UTWO drawdown since its inception was -2.04%, smaller than the maximum UTRE drawdown of -2.80%. Use the drawdown chart below to compare losses from any high point for UTWO and UTRE.

Drawdown Indicators

	UTWO	UTRE	Difference
Max Drawdown Largest peak-to-trough decline	-2.04%	-2.80%	+0.76%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-1.44%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-1.08%	-1.86%	+0.78%
Current Drawdown Current decline from peak	-0.38%	-1.07%	+0.69%
Average Drawdown Average peak-to-trough decline	-0.49%	-0.77%	+0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	0.48%	-0.24%

Volatility

UTWO vs. UTRE - Volatility Comparison

The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.36%, while US Treasury 3 Year Note ETF (UTRE) has a volatility of 0.58%. This indicates that UTWO experiences smaller price fluctuations and is considered to be less risky than UTRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UTWO	UTRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	0.58%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	0.92%	1.41%	-0.49%
Volatility (1Y) Calculated over the trailing 1-year period	1.35%	2.02%	-0.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.07%	2.70%	-0.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.07%	2.70%	-0.63%

UTWO vs. UTRE - Expense Ratio Comparison

Both UTWO and UTRE 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

UTWO vs. UTRE - Dividend Comparison

UTWO's dividend yield for the trailing twelve months is around 3.50%, which matches UTRE's 3.50% yield.

Position	TTM	2025	2024	2023	2022
UTRE US Treasury 3 Year Note ETF	3.50%	3.60%	4.01%	3.14%	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 UTWO and UTRE in my portfolio?

With a correlation of 0.96, UTWO and UTRE 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, UTWO or UTRE?

UTRE has higher volatility (0.58%) compared to UTWO (0.36%). In terms of maximum drawdown, UTWO dropped -2.04% vs UTRE's -2.80%.

Which ETF is better, UTWO or UTRE?

On 3-year performance, UTWO leads with 3.78% vs 3.64% for UTRE. 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, UTWO or UTRE?

Over the 3-year period, UTWO has performed better with a 3.78% return vs 3.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTWO or UTRE?

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

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

UTWO and UTRE have nearly identical dividend yields, around 3.50%.

What is the main difference between UTWO and UTRE?

UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while UTRE tracks ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross.

Which has better risk-adjusted returns?

UTWO currently has the higher Sharpe Ratio (2.33 vs 1.46), 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.