USFR vs VYM
WisdomTree Floating Rate Treasury Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | USFR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $18.3B | $79.0B | |
| Dividend Yield | 3.84% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +2.37% | +16.53% | |
| 1Y Return | +3.97% | +25.03% | |
| 3Y Return (annualized) | +4.53% | +18.54% | |
| 5Y Return (annualized) | +3.74% | +12.25% | |
| Volatility (annualized) | 0.9% | 14.6% | |
| Max Drawdown | -1.4% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 4, 2014 | Nov 10, 2006 |
USFR vs VYM Performance
WisdomTree Floating Rate Treasury Fund (USFR) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USFR returned +3.97% while VYM returned +25.03%. Year to date, USFR is up 2.37% versus a gain of 16.53% for VYM.
Over three years, USFR compounded at +4.53% per year against +18.54% for VYM; over five years the annualized figures are +3.74% and +12.25% respectively. Across the full 13-year window we track, VYM has the edge at +7.10% annualized vs +1.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USFR charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, USFR currently yields 3.84% against 2.86% for VYM.
Holdings Overlap
USFR and VYM share 0 holdings out of 559 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 VYM?
USFR has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, USFR or VYM?
Over the past year USFR returned +3.97% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), USFR annualized +1.50% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, USFR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 0.9% for USFR. Worst drawdown: USFR -1.4% vs VYM -58.8%.
Should I hold both USFR and VYM?
USFR and VYM have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USFR and VYM?
USFR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, USFR or VYM?
USFR yields 3.84% while VYM yields 2.86%, so USFR currently pays the higher dividend yield.
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