VFMO vs. USFR
VFMO (Vanguard U.S. Momentum Factor ETF) and USFR (WisdomTree Floating Rate Treasury Fund) are both exchange-traded funds - VFMO is a Momentum fund actively managed by Vanguard, while USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index. VFMO is actively managed, while USFR is passively managed. Over the past 5 years, VFMO returned 14.83%/yr vs 3.70%/yr for USFR. At a correlation of -0.03, they often move in opposite directions. VFMO charges 0.13%/yr vs 0.15%/yr for USFR.
Performance
VFMO vs. USFR - Performance Comparison
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Returns By Period
In the year-to-date period, VFMO achieves a 28.82% return, which is significantly higher than USFR's 1.78% return.
VFMO
- 1D
- 1.63%
- 1M
- 7.16%
- YTD
- 28.82%
- 6M
- 25.09%
- 1Y
- 49.52%
- 3Y*
- 28.88%
- 5Y*
- 14.83%
- 10Y*
- —
USFR
- 1D
- 0.00%
- 1M
- 0.29%
- YTD
- 1.78%
- 6M
- 1.89%
- 1Y
- 3.97%
- 3Y*
- 4.72%
- 5Y*
- 3.70%
- 10Y*
- 2.43%
VFMO vs. USFR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VFMO Vanguard U.S. Momentum Factor ETF | 28.82% | 17.39% | 26.14% | 16.25% | -12.84% | 19.16% | 31.36% | 28.22% | -11.41% |
USFR WisdomTree Floating Rate Treasury Fund | 1.78% | 4.23% | 5.47% | 5.18% | 1.98% | -0.03% | 0.56% | 2.02% | 1.49% |
Correlation
The correlation between VFMO and USFR is -0.14, 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 | -0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.05 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018 | -0.03 |
The correlation between VFMO and USFR shifts across timeframes, from -0.14 (1 year) to -0.03 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VFMO vs. USFR — Risk / Return Rank
VFMO
USFR
VFMO vs. USFR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Momentum Factor ETF (VFMO) 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.
| VFMO | USFR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -12.41 | ||
| Sortino ratioReturn per unit of downside risk | -47.02 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 13.24 | -11.87 |
| Calmar ratioReturn relative to maximum drawdown | 4.53 | 200.29 | -195.76 |
| Martin ratioReturn relative to average drawdown | 16.87 | 775.73 | -758.86 |
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Drawdowns
VFMO vs. USFR - Drawdown Comparison
The maximum VFMO drawdown since its inception was -36.77%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for VFMO and USFR.
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Drawdown Indicators
| VFMO | USFR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.77% | -1.36% | -35.41% |
Max Drawdown (1Y)Largest decline over 1 year | -10.98% | -0.02% | -10.96% |
Max Drawdown (3Y)Largest decline over 3 years | -24.40% | -0.06% | -24.34% |
Max Drawdown (5Y)Largest decline over 5 years | -25.80% | -0.18% | -25.62% |
Max Drawdown (10Y)Largest decline over 10 years | — | -0.80% | — |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -7.73% | -0.15% | -7.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.94% | 0.01% | +2.93% |
Volatility
VFMO vs. USFR - Volatility Comparison
Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 7.88% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.08%. This indicates that VFMO'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
| VFMO | USFR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.88% | 0.08% | +7.80% |
Volatility (6M)Calculated over the trailing 6-month period | 17.34% | 0.19% | +17.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.25% | 0.27% | +21.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.87% | 0.40% | +21.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.63% | 0.78% | +22.85% |
VFMO vs. USFR - Expense Ratio Comparison
VFMO has a 0.13% expense ratio, which is lower than USFR's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VFMO vs. USFR - Dividend Comparison
VFMO's dividend yield for the trailing twelve months is around 0.38%, less than USFR's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
USFR WisdomTree Floating Rate Treasury Fund | 3.91% | 4.15% | 5.17% | 5.12% | 1.78% | 0.01% | 0.40% | 2.08% | 1.67% | 1.03% | 0.29% |
VFMO Vanguard U.S. Momentum Factor ETF | 0.38% | 0.82% | 0.72% | 0.89% | 1.72% | 0.81% | 0.45% | 1.22% | 0.70% | 0.00% | 0.00% |
Frequently Asked Questions
VFMO and USFR have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFMO has higher volatility (7.88%) compared to USFR (0.08%). In terms of maximum drawdown, VFMO dropped -36.77% vs USFR's -1.36%.
On 5-year performance, VFMO leads with 14.83% vs 3.70% for USFR. On fees, VFMO is cheaper at 0.13% per year. 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 5-year period, VFMO has performed better with a 14.83% return vs 3.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFMO is cheaper with a 0.13% expense ratio, compared with 0.15% for USFR.
USFR has the higher dividend yield at 3.91%, compared with 0.38% for VFMO.
VFMO is categorized as Momentum, while USFR is Government Bonds. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.13% for VFMO and 0.15% for USFR.
USFR currently has the higher Sharpe Ratio (14.65 vs 2.24), 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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