What Is USFR? WisdomTree Floating Rate Treasury Fund

USFR is the WisdomTree Floating Rate Treasury Fund, an ETF that holds US Treasury Floating Rate Notes and tracks the Bloomberg U.S. Treasury Floating Rate Bond Index. These notes are two-year government securities whose coupons reset weekly at a spread over the 13-week Treasury bill rate, so the fund's yield floats with short-term interest rates.

Because the coupons reset so frequently, USFR carries almost no interest-rate duration, meaning its price barely moves when rates change. That makes it function much like a cash-management tool with US government credit backing. Its 0.15% expense ratio is low for the category, and it has grown into one of the largest floating-rate Treasury ETFs.

Approximate weights as of mid-2026; refresh quarterly from WisdomTree's fund page. Each ticker links to its individual stock guide in Walnut.

USFR's portfolio consists of US Treasury Floating Rate Notes across a range of issue dates and maturities, plus a small cash buffer. Every holding is a direct obligation of the US Treasury, so credit risk is minimal and the fund's income is driven entirely by the level of short-term Treasury rates.

The defining feature is the weekly coupon reset. As short-term rates rise, the notes pay more, and as they fall, the notes pay less, all while the underlying prices stay close to par. This structure is what gives USFR its cash-like stability and its variable, rate-linked distribution.

USFR competes with short-term Treasury bill ETFs like SGOV and BIL. The bill funds hold fixed-coupon bills that mature and roll over every few weeks or months, while USFR holds floating-rate notes whose coupons reset weekly. All three are ultra-low-risk ways to hold cash in government paper.

The practical difference is speed and cost. USFR's income adjusts almost immediately to rate changes, which can help when rates are rising and hurt when they are falling. SGOV and others sometimes carry slightly lower fees, so the choice often comes down to small fee differences and how you expect short-term rates to move.

USFR is not built for capital appreciation; its total return comes almost entirely from the interest it pays out each month. During higher-rate periods it has offered attractive cash-like yields with minimal price movement, which is exactly its design purpose.

The outlook for USFR's yield tracks the path of short-term interest rates. If the Fed holds rates high, the fund continues paying a healthy floating yield; if the Fed cuts, its distributions decline. Its price, however, should remain stable in nearly all environments because of its near-zero duration.

Walnut is not an investment adviser, and whether USFR fits depends on your goals and how you are managing cash. USFR is designed as a low-risk parking spot for cash with rate-linked income, not a growth holding, so it plays a very different role from equity or long-term bond funds.

Investors often use USFR for an emergency fund, dry powder waiting to be deployed, or the stable portion of a portfolio. If you are seeking long-term growth or higher income and can tolerate more risk, other asset classes would serve those goals better than a floating-rate Treasury fund.

USFR trades on NYSE Arca and can be purchased through most major brokerages, including Robinhood, Fidelity, Schwab, and Public. Many of these platforms support fractional shares, so you can size a cash position precisely rather than buying whole shares.

You can also connect your brokerage account to Walnut to track USFR alongside your other holdings and see how your cash sleeve fits your overall target weights. Walnut helps you monitor the position and its yield; the trade itself is always placed and settled at your own broker.

USFR is a cash-management tool: US government floating-rate notes with almost no duration risk at a 0.15% fee. Its yield rises and falls with short-term rates, making it a core cash-parking holding rather than a growth position, best compared with SGOV and BIL.

Whether USFR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is USFR a buy?

USFR yields ~3.7% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see USFR dividend: yield and schedule.