VTWO vs. USFR
VTWO (Vanguard Russell 2000 ETF) and USFR (WisdomTree Floating Rate Treasury Fund) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 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 10 years, VTWO returned 11.83%/yr vs 2.43%/yr for USFR. At a correlation of -0.00, they often move in opposite directions. VTWO charges 0.06%/yr vs 0.15%/yr for USFR.
Performance
VTWO vs. USFR - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VTWO achieves a 21.67% return, which is significantly higher than USFR's 1.78% return. Over the past 10 years, VTWO has outperformed USFR with an annualized return of 11.83%, while USFR has yielded a comparatively lower 2.43% annualized return.
VTWO
- 1D
- 0.92%
- 1M
- 4.84%
- YTD
- 21.67%
- 6M
- 18.16%
- 1Y
- 44.30%
- 3Y*
- 19.86%
- 5Y*
- 6.94%
- 10Y*
- 11.83%
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%
VTWO vs. USFR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTWO Vanguard Russell 2000 ETF | 21.67% | 12.90% | 11.55% | 17.08% | -20.49% | 14.79% | 20.22% | 25.81% | -11.15% | 14.69% |
USFR WisdomTree Floating Rate Treasury Fund | 1.78% | 4.23% | 5.47% | 5.18% | 1.98% | -0.03% | 0.56% | 2.02% | 2.01% | 1.03% |
Correlation
The correlation between VTWO and USFR is -0.18, 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 | -0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.05 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.04 |
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 | -0.00 |
The correlation between VTWO and USFR shifts across timeframes, from -0.18 (1 year) to -0.00 (all time), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VTWO vs. USFR — Risk / Return Rank
VTWO
USFR
VTWO vs. USFR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) 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.
| VTWO | USFR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -12.39 | ||
| Sortino ratioReturn per unit of downside risk | -46.81 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 13.24 | -11.88 |
| Calmar ratioReturn relative to maximum drawdown | 4.05 | 200.29 | -196.24 |
| Martin ratioReturn relative to average drawdown | 14.36 | 775.73 | -761.38 |
Loading charts...
Drawdowns
VTWO vs. USFR - Drawdown Comparison
The maximum VTWO drawdown since its inception was -41.19%, which is greater than USFR's maximum drawdown of -1.36%. Use the drawdown chart below to compare losses from any high point for VTWO and USFR.
Loading charts...
Drawdown Indicators
| VTWO | USFR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.19% | -1.36% | -39.83% |
Max Drawdown (1Y)Largest decline over 1 year | -10.99% | -0.02% | -10.97% |
Max Drawdown (3Y)Largest decline over 3 years | -27.57% | -0.06% | -27.51% |
Max Drawdown (5Y)Largest decline over 5 years | -31.88% | -0.18% | -31.70% |
Max Drawdown (10Y)Largest decline over 10 years | -41.19% | -0.80% | -40.39% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -8.37% | -0.15% | -8.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.09% | 0.01% | +3.08% |
Volatility
VTWO vs. USFR - Volatility Comparison
Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 6.49% compared to WisdomTree Floating Rate Treasury Fund (USFR) at 0.08%. This indicates that VTWO'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.
Loading charts...
Volatility by Period
| VTWO | USFR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.49% | 0.08% | +6.41% |
Volatility (6M)Calculated over the trailing 6-month period | 14.25% | 0.19% | +14.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.69% | 0.27% | +19.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.56% | 0.40% | +22.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.14% | 0.78% | +22.36% |
VTWO vs. USFR - Expense Ratio Comparison
VTWO has a 0.06% 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
VTWO vs. USFR - Dividend Comparison
VTWO's dividend yield for the trailing twelve months is around 1.09%, less than USFR's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
VTWO Vanguard Russell 2000 ETF | 1.09% | 1.25% | 1.21% | 1.45% | 1.48% | 1.13% | 0.92% | 1.36% | 1.41% | 1.18% | 1.27% | 1.23% |
Frequently Asked Questions
VTWO and USFR have a correlation of -0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTWO has higher volatility (6.49%) compared to USFR (0.08%). In terms of maximum drawdown, VTWO dropped -41.19% vs USFR's -1.36%.
On 10-year performance, VTWO leads with 11.83% vs 2.43% for USFR. On fees, VTWO is cheaper at 0.06% 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 10-year period, VTWO has performed better with a 11.83% return vs 2.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTWO is cheaper with a 0.06% expense ratio, compared with 0.15% for USFR.
USFR has the higher dividend yield at 3.91%, compared with 1.09% for VTWO.
VTWO is categorized as Small Cap Blend Equities, while USFR is Government Bonds. VTWO tracks Russell 2000 Index, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.06% for VTWO and 0.15% for USFR.
USFR currently has the higher Sharpe Ratio (14.65 vs 2.27), 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.
Find the right allocation for VTWO and USFR
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer