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

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.