WisdomTree USD Floating Rate Treasury Bond

ETF description

The WisdomTree USD Floating Rate Treasury Bond ETF provides investors with exposure to U.S. Treasury securities that have floating interest rates. By tracking the Bloomberg U.S. Treasury Floating Rate Bond index, this ETF focuses on Treasury bonds with interest rates that adjust periodically based on market conditions, offering protection against rising interest rates. The ETF aims to deliver income with less sensitivity to interest rate changes compared to fixed‑rate bonds, while maintaining the safety and credit quality associated with U.S. government securities. It is designed for investors seeking to hedge against interest rate risk while benefiting from the stability and security of U.S. Treasury debt.

Issuer details

WisdomTree is a leading asset management firm specializing in innovative ETFs and ETPs (exchange‑traded products), with over $80 billion in assets under management as of June 2024. WisdomTree offers an extensive range of investment products across various market segments. Founded in 2006, WisdomTree is known for its fundamentally weighted ETFs and its focus on providing innovative and thematic investment strategies. The firm places a strong emphasis on income‑focused products, catering to the needs of income‑seeking investors. Notable ETFs include the WisdomTree U.S. Quality Dividend Growth Fund (DGRW), the WisdomTree Europe Hedged Equity Fund (HEDJ), and the WisdomTree Cloud Computing Fund (WCLD), reflecting WisdomTree’s commitment to delivering diverse and forward‑looking investment solutions.

Index details

The WisdomTree USD Floating Rate Treasury Bond index provides targeted exposure to U.S. Treasury securities with floating interest rates. This index includes a selection of short‑term U.S. government bonds that have interest payments which adjust periodically based on changes in market interest rates. By focusing on floating rate Treasury bonds, the index aims to offer investors protection against rising interest rates while maintaining a high level of credit quality and stability. Its emphasis on floating rate, U.S. government‑issued securities makes it an attractive option for portfolios seeking to mitigate interest rate risk and achieve stable returns in a dynamic interest rate environment.