FLOT vs. VMFXX
FLOT (iShares Floating Rate Bond ETF) and VMFXX (Vanguard Federal Money Market Fund) are both funds - FLOT is a Ultrashort Bond fund tracking the Bloomberg US Floating Rate Note < 5 Years Index, while VMFXX is a Money Market fund managed by Vanguard. Over the past 5 years, FLOT returned 4.20%/yr vs 2.39%/yr for VMFXX. At a 0.02 correlation, their price movements are largely independent. FLOT charges 0.15%/yr vs 0.11%/yr for VMFXX.
Performance
FLOT vs. VMFXX - Performance Comparison
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Returns By Period
In the year-to-date period, FLOT achieves a 1.87% return, which is significantly higher than VMFXX's 1.50% return.
FLOT
- 1D
- 0.00%
- 1M
- 0.41%
- YTD
- 1.87%
- 6M
- 2.15%
- 1Y
- 4.85%
- 3Y*
- 5.60%
- 5Y*
- 4.20%
- 10Y*
- 3.03%
VMFXX
- 1D
- 0.00%
- 1M
- 0.30%
- YTD
- 1.50%
- 6M
- 1.82%
- 1Y
- 3.95%
- 3Y*
- 3.35%
- 5Y*
- 2.39%
- 10Y*
- —
FLOT vs. VMFXX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 1.87% | 4.91% | 6.53% | 6.43% | 1.28% | 0.12% |
VMFXX Vanguard Federal Money Market Fund | 1.50% | 4.24% | 1.64% | 4.64% | 0.00% | 0.00% |
Correlation
The correlation between FLOT and VMFXX is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since May 26, 2021 | 0.02 |
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Return for Risk
FLOT vs. VMFXX — Risk / Return Rank
FLOT
VMFXX
FLOT vs. VMFXX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) and Vanguard Federal Money Market Fund (VMFXX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| FLOT | VMFXX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.87 | ||
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 3.22 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 11.27 | — | — |
| Martin ratioReturn relative to average drawdown | 104.83 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FLOT | VMFXX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 6.54 | 3.67 | +2.87 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.38 | 2.60 | -0.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.73 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.66 | 2.59 | -1.93 |
Drawdowns
FLOT vs. VMFXX - Drawdown Comparison
The maximum FLOT drawdown since its inception was -13.54%, which is greater than VMFXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for FLOT and VMFXX.
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Drawdown Indicators
| FLOT | VMFXX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.54% | 0.00% | -13.54% |
Max Drawdown (1Y)Largest decline over 1 year | -0.43% | 0.00% | -0.43% |
Max Drawdown (3Y)Largest decline over 3 years | -1.57% | 0.00% | -1.57% |
Max Drawdown (5Y)Largest decline over 5 years | -2.36% | 0.00% | -2.36% |
Max Drawdown (10Y)Largest decline over 10 years | -13.54% | — | — |
Current DrawdownCurrent decline from peak | -0.02% | 0.00% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -0.21% | 0.00% | -0.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.05% | 0.00% | +0.05% |
Volatility
FLOT vs. VMFXX - Volatility Comparison
The current volatility for iShares Floating Rate Bond ETF (FLOT) is 0.20%, while Vanguard Federal Money Market Fund (VMFXX) has a volatility of 0.30%. This indicates that FLOT experiences smaller price fluctuations and is considered to be less risky than VMFXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLOT | VMFXX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.20% | 0.30% | -0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 0.62% | 0.79% | -0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.75% | 1.12% | -0.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.77% | 0.94% | +0.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 0.94% | +3.21% |
FLOT vs. VMFXX - Expense Ratio Comparison
FLOT has a 0.15% expense ratio, which is higher than VMFXX's 0.11% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FLOT vs. VMFXX - Dividend Comparison
FLOT's dividend yield for the trailing twelve months is around 4.54%, more than VMFXX's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 4.54% | 4.84% | 5.82% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% |
VMFXX Vanguard Federal Money Market Fund | 3.87% | 4.14% | 1.63% | 4.53% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FLOT and VMFXX have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMFXX has higher volatility (0.30%) compared to FLOT (0.20%). In terms of maximum drawdown, FLOT dropped -13.54% vs VMFXX's 0.00%.
FLOT currently has the higher Sharpe Ratio (6.54 vs 3.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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