(USFR) WisdomTree Floating Rate - Ratings and Ratios

The WisdomTree Floating Rate Treasury Fund (USFR) is an ETF that tracks an index measuring the performance of floating rate public obligations of the U.S. Treasury, investing at least 80% of its assets in component securities or economically identical investments. As a non-diversified fund, it focuses on a specific segment of the market.

Given its investment objective, USFR is likely to be sensitive to changes in interest rates and Treasury yields. The funds floating rate nature means its income is tied to short-term interest rates, potentially providing a hedge against rising rates. Key Performance Indicators (KPIs) to monitor for USFR include its yield, duration, and spread over benchmark Treasuries. A high yield relative to its peers and a low duration (likely close to zero given its floating rate nature) are desirable. Additionally, tracking its tracking error against its underlying index is crucial to assess its effectiveness in mirroring the intended market exposure.

From a technical analysis perspective, while avoiding repetition of provided technical data, its worth noting that USFRs price action and moving averages suggest a stable trend. To further analyze its performance, one could examine its relative strength index (RSI) to gauge if its overbought or oversold, and compare its performance to that of other ultrashort bond ETFs to assess its competitive standing. Its low Average True Range (ATR) indicates low volatility, making it potentially suitable for investors seeking stable, short-term investments.

With an AUM of over $18.5 billion, USFR has significant scale, which can contribute to lower expense ratios for investors due to economies of scale. Investors should monitor the funds expense ratio, currently not provided, as a key metric to ensure it remains competitive within the ultrashort bond ETF category.