WisdomTree Bloomberg Floating Rate Treasury Fund

USFR tracks a market-value-weighted index of US Treasury floating-rate securities.

The WisdomTree Floating Rate Treasury Fund holds a portfolio of floating rate bonds with attractive yields relative to stocks and Treasury bonds. Equity and Treasury investors have attempted to front-run the Fed easing cycle, but expectations now seem too aggressive, setting up the risk of a decline in long-duration assets. Fiscal deterioration poses a risk to the USFR as it could force the Fed to cut rates even if inflation remains elevated to prevent a surge in government borrowing costs.

USFR: Floating Rate Bonds Will Benefit If The Fed Disappoints

The Federal Reserve is expected to make three rate cuts in 2024, shifting to an easier monetary policy. Treasury bill yields closely follow Fed Funds policy rates, so the income from the USFR ETF will decrease as rates are cut. To protect against rate cuts, investors may want to consider lengthening the duration of their 'cash' holdings with 2-year treasury funds.

USFR: Skate To Where The Puck Is

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By Behnood Noei, CFA Associate Director, Fixed Income and Rick Harper Chief Investment Officer, Fixed Income and Model Portfolios As many readers of this piece would likely agree, returning from year-end holidays and preparing for another year of market volatility, monetary/fiscal/geopolitical challenges and the added bonus of U.S. presidential elections requires significant mental preparation.

And the Award Goes to

After more than a year of “will they/won't they” coverage about interest rates and inflation, investors may be a bit fatigued. That hasn't stopped markets from pricing in as many as “seven” rate cuts for the whole of 2024.

Tired of the Rate Cuts Game? USFR Can Help

2023 contained plenty of takeaways in the dynamic world of fixed income, as bonds roared back into relevance. Still, despite fixed income's resurgence, many investors likely have questions about their debt holdings in 2024.

Look to Floating Rate ETF USFR to Start 2024

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During LSEG Lipper's fund flows week that ended December 20, 2023, investors were overall net sellers of fund assets for the second straight week, removing a net $42.8 billion.

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Market volatility and ongoing investor uncertainty were hallmarks for much of the year. In an environment of elevated inflation and interest rates, advisors and investors increasingly turned to alternatives to diversify their portfolios.

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Ahead of 2024, many investors are likely revisiting their portfolios. A new year presents an obvious opportunity to take stock of an investor's priorities, or perhaps build a strong foundation.

Look to Treasury ETF USFR Ahead of 2024 for Volatility-Free Income

It's the question that has beguiled markets throughout 2023 – when will the rate hikes end? After another pause from the Fed for November, it seemed like the agency may have been satisfied.

Rate Hikes Over? Perhaps Not: Eye USFR

The Federal Reserve has paused its rate hikes, indicating that short-term interest rates may have peaked. Market expectations suggest the first rate cut may occur in mid-2024, with three cuts expected by the end of 2024. I plan to switch treasury bill holdings into 2-year notes in anticipation of possible economic weakness and a cut in Fed Funds rates.

USFR: Keeping An Eye On The Exit (Downgrade To Hold)

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Floating rate securities have strong yields, low duration, and have significantly outperformed YTD. There are several strong floating rate funds available to investors. Credit risk varies, but there are options with minimal risk and high yields in the floating rate space.

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By Kevin Flanagan Head of Fixed Income Strategy and Scott Welch, CIMA ® Chief Investment Officer, Model Portfolios This article is relevant to financial professionals who are considering offering model portfolios to their clients. If you are an individual investor interested in WisdomTree ETF Model Portfolios, please inquire with your financial professional.

Learn to Yield

With 10-year Treasury yields dangerously flirting with 5% and as some longer-dated Treasury exchange traded funds tumble to multiyear lows, it's understandable that fixed income investors are seeking shelter from the ongoing bond market storm.

Palpable Enthusiasm for Floating Rate Notes ETFs

The US equity market is overvalued based on historical norms in S&P 500 dividend yields and the S&P/Bond ratio. With consumer price inflation still high, there is plenty of justification for the central banks to keep rates high. At current levels, US debt holders are getting their best real yield in 15 years.

USFR: Hiding Out In The WisdomTree Treasury ETF

Is the Fed actually done with rate hikes? The answer is far from clear.

More Rate Hikes? Watch Treasury ETF USFR

iShares 0-3 Month Treasury Bond ETF

Owning treasury bills and floating rate treasury bond funds can provide attractive risk-free yields in uncertain economic times. The recent "hawkish pause" by the Federal Reserve has positive implications for SGOV and USFR. Fed Officials are forecasting 5%+ yields until the end of 2024. If they do end up cutting interest rates, that will be because the economy weakens. In that case, SGOV and USFR give investors a 'real option' to buy cheap assets.

USFR And SGOV: Fed Suggest 5% Yields Until End Of 2024

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On this episode of ETF Prime, host Nate Geraci speaks with a pair of individuals discussing several different ETF-related topics. His guests include VettaFi's Lara Crigger, who goes in-depth on a plethora of subjects including spot Ethereum ETF filings, fixed income ETF flows, and more.

ETF Prime: Crigger on Spot Ethereum ETF Filings, Plus Franklin Templeton's Approach

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Hey VettaFi Voices, the question this week is “Have we avoided recession?” There are differing opinions all around, but some reputable sources like Goldman Sachs are saying it's increasingly unlikely.

VettaFi Voices On: The Odds of Avoiding a Recession

In an environment of pronounced volatility and less-than-certain equity and bond performance in the last few years, investors are leaning toward more complex strategies such as alternatives. Managed futures are one such strategy, equally complex and alluring for the strong diversification they can bring to portfolios.

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Hi! In this week's ETF Wrap, you'll see the spot in markets investors liked in August as ETF flows trended below the historical average in a down month for stocks.

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Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

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Is the rate cycle really coming to an end? That's what some market watchers are anticipating, some at least predicting a pause in September.

Don't Ignore Continued Case for Treasuries in USFR

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Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

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In this edition of the top-performing ETFs, a wide variety of strategies proved their worth in one-week returns. Various rising rate strategies took the lead along with India ETFs mostly at the expense of crypto strategies.

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Fitch Ratings downgraded the United States' long-term sovereign credit rating from AAA to AA+ due to expected fiscal deterioration and high government debt burden. The U.S. government's deteriorating fiscal situation may push up long-term treasury yields, negatively impacting long-duration treasury bonds. Investors are recommended to shift their fixed income allocation to short-duration treasury bills like SGOV and USFR to earn the highest money market yields in a decade while retaining optionality.

News for WisdomTree Bloomberg Floating Rate Treasury Fund ETF (USFR)