VMFXX vs. USFR

Last updated Jun 5, 2026

VMFXX (Vanguard Federal Money Market Fund) and USFR (WisdomTree Floating Rate Treasury Fund) are both funds - VMFXX is a Money Market fund managed by Vanguard, while USFR is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Bond Index. Over the past 5 years, VMFXX returned 2.39%/yr vs 3.66%/yr for USFR. At a 0.11 correlation, their price movements are largely independent. VMFXX charges 0.11%/yr vs 0.15%/yr for USFR.

Performance

VMFXX vs. USFR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Federal Money Market Fund (VMFXX) and WisdomTree Floating Rate Treasury Fund (USFR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMFXX achieves a 1.50% return, which is significantly lower than USFR's 1.60% return.

VMFXX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.50%
• 6M: 1.82%
• 1Y: 3.95%
• 3Y*: 3.35%
• 5Y*: 2.39%
• 10Y*: —

USFR

• 1D: 0.00%
• 1M: 0.27%
• YTD: 1.60%
• 6M: 1.96%
• 1Y: 4.01%
• 3Y*: 4.76%
• 5Y*: 3.66%
• 10Y*: 2.47%

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

VMFXX vs. USFR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VMFXX Vanguard Federal Money Market Fund	1.50%	4.24%	1.64%	4.64%	0.00%	0.00%
USFR WisdomTree Floating Rate Treasury Fund	1.60%	4.23%	5.47%	5.18%	1.98%	-0.07%

Correlation

The correlation between VMFXX and USFR is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (All Time) Calculated using the full available price history since May 26, 2021	0.11

The correlation between VMFXX and USFR shifts across timeframes, from 0.11 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VMFXX vs. USFR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments 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

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.

VMFXX vs. USFR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Federal Money Market Fund (VMFXX) 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.

	VMFXX	USFR	Difference
Sharpe ratio: Return per unit of total volatility	3.67	15.01	-11.34
Sortino ratio: Return per unit of downside risk	—	50.39	—
Omega ratio: Gain probability vs. loss probability	—	13.37	—
Calmar ratio: Return relative to maximum drawdown	—	202.38	—
Martin ratio: Return relative to average drawdown	—	783.80	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMFXX vs. USFR - Sharpe Ratio Comparison

The current VMFXX Sharpe Ratio is 3.67, which is lower than the USFR Sharpe Ratio of 15.01. The chart below compares the historical Sharpe Ratios of VMFXX and USFR, 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

	VMFXX	USFR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.67	15.01	-11.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.60	9.25	-6.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	3.07	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.60	1.60	+0.99

Drawdowns

VMFXX vs. USFR - Drawdown Comparison

The maximum VMFXX drawdown since its inception was 0.00%, smaller than the maximum USFR drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for VMFXX and USFR.

Drawdown Indicators

	VMFXX	USFR	Difference
Max Drawdown Largest peak-to-trough decline	0.00%	-1.36%	+1.36%
Max Drawdown (1Y) Largest decline over 1 year	0.00%	-0.02%	+0.02%
Max Drawdown (3Y) Largest decline over 3 years	0.00%	-0.06%	+0.06%
Max Drawdown (5Y) Largest decline over 5 years	0.00%	-0.18%	+0.18%
Max Drawdown (10Y) Largest decline over 10 years	—	-0.80%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	0.00%	-0.16%	+0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.01%	-0.01%

Volatility

VMFXX vs. USFR - Volatility Comparison

Vanguard Federal Money Market Fund (VMFXX) has a higher volatility of 0.30% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.06%. This indicates that VMFXX'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.

Volatility by Period

	VMFXX	USFR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.30%	0.06%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	0.79%	0.18%	+0.61%
Volatility (1Y) Calculated over the trailing 1-year period	1.12%	0.27%	+0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.94%	0.40%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.94%	0.81%	+0.13%

VMFXX vs. USFR - Expense Ratio Comparison

VMFXX has a 0.11% 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

VMFXX vs. USFR - Dividend Comparison

VMFXX's dividend yield for the trailing twelve months is around 3.87%, 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%
VMFXX Vanguard Federal Money Market Fund	3.87%	4.14%	1.63%	4.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VMFXX and USFR in my portfolio?

VMFXX and USFR have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMFXX or USFR?

VMFXX has higher volatility (0.30%) compared to USFR (0.06%). In terms of maximum drawdown, VMFXX dropped 0.00% vs USFR's -1.36%.

Which has better risk-adjusted returns?

USFR currently has the higher Sharpe Ratio (15.01 vs 3.67), 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.