WisdomTree Floating Rate Treasury Fund (USFR) Celebrates 10-Year Anniversary

March 26, 2024 at 08:00 AM EDT

Fund offers investors a strategic solution amidst current and prospective interest rate landscape

WisdomTree, Inc. (NYSE: WT), a global financial innovator, today celebrates the ten-year anniversary of the launch of the WisdomTree Floating Rate Treasury Fund (USFR). Over this ten-year period, investors have been presented with a myriad of rate landscapes and USFR has stood the test of time.

“We’re thrilled to celebrate the 10-year anniversary of USFR, but what’s more is its incredible runway is still intact,” said Kevin Flanagan, Head of Fixed Income Strategy at WisdomTree. “While, initially, investors viewed it as a rate hedge strategy and gravitated to it when the Fed was tightening monetary policy, it has proven to have a strategic place in investors’ portfolios for all different types of rate landscapes. We believe it’s one for investors to consider from the current and prospective interest rate landscape.”

The U.S. Treasury completed its first floating rate auction on January 29, 2014, issuing $15 billion of a note with a two-year stated maturity.¹ This was the first new class of issuance by the Treasury since it issued Treasury Inflation-Protected Securities (TIPS)² in 1997. The Treasury auctions a new two-year note every quarter, with re-openings of the new issue in the two months that follow. As another means for the Treasury to meet growing investor demand and to diversify its sources of funding, the issuance and increasing investor adoption of floating rate Treasuries has, and should continue, to grow over the next several years. Floating-rate Treasuries provide an option to secure short-term interest rates with limited price sensitivity to credit risk or interest rates.

WisdomTree Floating Rate Treasury Fund (USFR):

Provides cost-effective access to newly issued U.S. government floating rate notes
Designed to rise or fall with short-term rates and are priced at a spread over 3-mo Treasury Bills
Short-term government bond solution that fluctuates with the weekly 3-mo Treasury Bill auctions

U.S. Treasury floating rate notes have grown to become an integral aspect for investors’ fixed income portfolios. In the new rate regime, floating rate Treasury Securities represent an effective way for investors to help reduce their exposure to volatility while also generating income payments that are backed by the full faith and credit of the U.S. government.

To see more fund information, visit: https://www.wisdomtree.com/investments/etfs/fixed-income/usfr

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus or summary prospectus containing this and other important information, please call 866.909.9473 or visit WisdomTree.com/investments to view or download a prospectus or summary prospectus. Investors should read the prospectus or summary prospectus carefully before investing.

WisdomTree Funds are distributed by Foreside Fund Services, LLC.

Kevin Flanagan is a registered representative of Foreside Fund Services, LLC.

Important Risk Information

There are risks associated with investing, including possible loss of principal. Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value. Fixed income securities will normally decline in value as interest rates rise. The value of an investment in the Fund may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Fund’s portfolio investments. Due to the investment strategy of this Fund it may make higher capital gain distributions than other ETFs. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.

About WisdomTree

WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain-enabled technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.*

*The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc. (NMLS ID: 2372500), in select U.S. jurisdictions and may be limited where prohibited by law. Visit www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information. Foreside Fund Services, LLC, (FFS) is not affiliated with WisdomTree, Inc. and its subsidiaries.

FFS does not provide digital wallet or digital asset services.

WisdomTree currently has approximately $105.9 billion in assets under management globally.

For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.

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WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

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¹U.S. Department of the Treasury, 1/29/14

²Treasury Inflation-Protected Securities (TIPS): Bonds issued by the U.S. government whose coupon and principal payments are linked to the Consumer Price Index.