USFR vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricUSFRVOOWinner
Expense Ratio0.15%0.03%
AUM$18.3B$979.0B
Dividend Yield3.84%1.09%
Holdings6509
YTD Return+2.35%+13.79%
1Y Return+3.97%+23.01%
3Y Return (annualized)+4.52%+21.78%
5Y Return (annualized)+3.73%+13.39%
Volatility (annualized)0.9%14.1%
Max Drawdown-1.4%-34.3%
Fund FamilyWisdomTree InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 4, 2014Sep 7, 2010

USFR vs VOO Performance

WisdomTree Floating Rate Treasury Fund (USFR) is a ETF from WisdomTree Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year USFR returned +3.97% while VOO returned +23.01%. Year to date, USFR is up 2.35% versus a gain of 13.79% for VOO.

Over three years, USFR compounded at +4.52% per year against +21.78% for VOO; over five years the annualized figures are +3.73% and +13.39% respectively. Across the full 13-year window we track, VOO has the edge at +13.57% annualized vs +1.50%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 0.9% for USFR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -1.4% for USFR and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

USFR charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, USFR currently yields 3.84% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

USFR and VOO share 0 holdings out of 506 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, USFR or VOO?

USFR has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, USFR or VOO?

Over the past year USFR returned +3.97% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (13 years), USFR annualized +1.50% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, USFR or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 0.9% for USFR. Worst drawdown: USFR -1.4% vs VOO -34.3%.

Should I hold both USFR and VOO?

USFR and VOO have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between USFR and VOO?

USFR and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, USFR or VOO?

USFR yields 3.84% while VOO yields 1.09%, so USFR currently pays the higher dividend yield.

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