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WisdomTree USFR highlights floating-rate Treasury exposure after Fed hike

The ETF resets its yield weekly using three-month Treasury bill auctions and targets an effective duration near 0.02 years.

Reported · Written up by our desk · ETFs

After the Federal Reserve raised rates by 25 basis points at its September meeting, fixed-income investors are reassessing how to position for future interest-rate moves, according to ETF Trends.

The outlet points to the WisdomTree Floating Rate Treasury Fund (USFR), saying its weekly rate resets, based on recent three-month Treasury bill auctions, are designed to keep effective duration around 0.02 years to help shield principal from interest rate volatility.

ETF Trends also says USFR invests exclusively in U.S. Treasury Floating Rate Notes (FRNs), contrasting it with traditional fixed-rate bond funds that can face price depreciation when rates rise. In the wake of the Fed updates, the article says USFR’s appeal centers on that floating-rate structure and its ability to perform across different rate outcomes.

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