WisdomTree Floating Rate Treasury Fund

USFR

Market cap $17.9B

Retirees who watched intermediate bond funds bleed principal during the 2022 to 2023 rate shock have spent the last few years hunting for fixed income that pays monthly without the duration trap.

Collateralized Loan Obligations (CLOs) were once the domain of institutional finance. However, the advent of ETFs have democratized access to this specialized corner of the structured credit market.

WisdomTree Investments marked 20 years of operation this week, per a release from the firm. The firm launched its first 20 ETFs on June 16, 2006, with an approach the firm called “Modern Alpha.

Federal Reserve hikes are increasingly likely, with inflation increasing and unemployment stable. Lots of investments and ETFs should outperform during a period of rising rates. I'll be giving a quick rundown of four such ETFs in this article. Funds vary in risk, from cash ETFs to riskier choices, with the possibility of outstanding gains.

Inflation-protected funds don't always protect against inflation. As consumer-price inflation hits a three-year high due to the Iran war, the premise in their names is being tested.

Inflation is increasing once more. Rates could follow. Cash would perform quite well during a rising rates scenario, seeing higher yields, and minimal price movements or losses. I'll be giving a quick rundown on three strong cash ETFs in this article.

This year, advisors are contending with a fixed income conundrum. The war in Iran sent energy prices surging, reigniting inflationary pressures in the process.

This year has brought two Federal Open Market Committee (FOMC) meetings, but no interest rate reductions by the Federal Reserve. Following the most recent meeting, it appears the best-case scenario for 2026 rate reductions is just one.

Moving from CDs into highly liquid Treasury bills can double your income with almost no additional risk. With a fixed income ETF, your money is available whenever you need it.

The WisdomTree Floating Rate Treasury Fund ETF focuses on floating rate treasury notes. These securities have effectively identical credit and rate risk to t-bills, but trade at a small spread to these, and with a 3.7% forward yield. Returns are higher too, volatility is the same.