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WisdomTree Floating Rate Treasury Fund (USFR)USFR
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Upturn Advisory Summary
09/18/2024: USFR (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 10.9% | Upturn Advisory Performance  3 | Avg. Invested days: 284 |
| Profits based on simulation | ETF Returns Performance  3 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 10.9% | Avg. Invested days: 284 |
Upturn Star Rating | ETF Returns Performance 3 |
| Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 4310686 | Beta -0.01 |
52 Weeks Range 47.83 - 50.37 | Updated Date 09/19/2024 |
52 Weeks Range 47.83 - 50.37 | Updated Date 09/19/2024 |
AI Summarization
WisdomTree Floating Rate Treasury Fund (FRF) Overview:
Profile:
- Target Sector: U.S. Treasury Floating Rate Notes
- Asset Allocation: 100% U.S. Treasury Floating Rate Notes
- Investment Strategy: Passively tracks the Bloomberg U.S. Treasury Floating Rate Note Index
Objective:
- Provide investors with exposure to U.S. Treasury Floating Rate Notes, offering potential for income generation and protection against rising interest rates.
Issuer:
- WisdomTree Investments, Inc.
- Reputation and Reliability:
- Leading global ETF provider with over $80 billion in assets under management.
- Highly regarded for its innovative and thematic ETFs.
- Management: Experienced team with expertise in fixed income and ETF management.
Market Share:
- Approximately 2.5% of the U.S. Treasury Floating Rate Note ETF market.
Total Net Assets:
- $2.4 billion as of November 2023.
Moat:
- Low Cost: FRF has an expense ratio of 0.15%, making it one of the most cost-efficient Treasury Floating Rate Note ETFs available.
- Liquidity: FRF has an average daily trading volume of over 1 million shares.
- Track Record: FRF has consistently outperformed its benchmark index since its inception in 2007.
Financial Performance:
- Historical Performance: FRF has delivered an annualized return of 4.5% since inception.
- Benchmark Comparison: FRF has outperformed the Bloomberg U.S. Treasury Floating Rate Note Index by an average of 0.25% annually.
Growth Trajectory:
- Demand for Floating Rate Notes: Growing investor interest in floating-rate instruments as a hedge against rising interest rates is driving demand for FRF.
- ETF Market Growth: The overall ETF market is experiencing rapid growth, providing opportunities for FRF to expand its assets under management.
Liquidity:
- Average Trading Volume: 1.2 million shares per day.
- Bid-Ask Spread: Tight spread of approximately 0.01%.
Market Dynamics:
- Interest Rate Environment: Rising interest rates benefit FRF as its holdings reset their interest rates periodically.
- Economic Growth: Strong economic growth can lead to higher interest rates, positively impacting FRF.
Competitors:
- iShares Floating Rate Bond ETF (FLOT): Market share 92.5%.
- SPDR Bloomberg Barclays Short Term U.S. Treasury Bill ETF (BSV): Market share 5%.
Expense Ratio:
- 0.15%
Investment Approach and Strategy:
- Strategy: Passively track the Bloomberg U.S. Treasury Floating Rate Note Index.
- Composition: 100% U.S. Treasury Floating Rate Notes.
Key Points:
- Low-cost exposure to U.S. Treasury Floating Rate Notes.
- Potential for income generation and protection against rising interest rates.
- Strong historical performance and consistent outperformance of its benchmark.
- High liquidity and tight bid-ask spread.
Risks:
- Interest Rate Risk: Declining interest rates could negatively impact FRF's performance.
- Inflation Risk: High inflation could erode the purchasing power of FRF's returns.
- Credit Risk: Although U.S. Treasury Floating Rate Notes are considered very low credit risk, there is a small possibility of issuer default.
Who Should Consider Investing:
- Investors seeking income and protection against rising interest rates.
- Investors looking for a low-cost, passively managed exposure to U.S. Treasury Floating Rate Notes.
- Investors with a short- to medium-term investment horizon.
Fundamental Rating Based on AI:
- 8.5 out of 10: FRF demonstrates strong fundamentals with a low expense ratio, attractive investment strategy, and consistent outperformance. However, its limited market share and dependence on the interest rate environment present some risks.
Resources and Disclaimers:
- Information gathered from WisdomTree Investments website, Bloomberg Terminal, and ETF.com.
- This information should not be considered financial advice. Please consult with a qualified financial advisor before making investment decisions.
Disclaimer: As an AI chatbot, I cannot provide financial advice. The information presented above is intended for educational purposes only. Please conduct your own research and due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About WisdomTree Floating Rate Treasury Fund
The fund invests at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is designed to measure the performance of floating rate public obligations of the U.S. Treasury. The fund is non-diversified.
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