FTSM vs. VBIL

Last updated Jun 5, 2026

FTSM (First Trust Enhanced Short Maturity ETF) and VBIL (Vanguard 0-3 Month Treasury Bill ETF) are both Ultrashort Bond funds. FTSM is actively managed, while VBIL is passively managed. Over the past year, FTSM returned 4.15% vs 3.93% for VBIL. At a 0.22 correlation, their price movements are largely independent. FTSM charges 0.44%/yr vs 0.07%/yr for VBIL.

Performance

FTSM vs. VBIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Enhanced Short Maturity ETF (FTSM) and Vanguard 0-3 Month Treasury Bill ETF (VBIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FTSM having a 1.49% return and VBIL slightly higher at 1.51%.

FTSM

• 1D: 0.06%
• 1M: 0.37%
• YTD: 1.49%
• 6M: 1.84%
• 1Y: 4.15%
• 3Y*: 4.86%
• 5Y*: 3.46%
• 10Y*: 2.55%

VBIL

• 1D: 0.01%
• 1M: 0.30%
• YTD: 1.51%
• 6M: 1.81%
• 1Y: 3.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FTSM vs. VBIL - Yearly Performance Comparison

	2026 (YTD)	2025
FTSM First Trust Enhanced Short Maturity ETF	1.49%	4.16%
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.51%	3.71%

Correlation

The correlation between FTSM and VBIL is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (All Time) Calculated using the full available price history since Feb 12, 2025	0.22

Return for Risk

FTSM vs. VBIL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FTSM

FTSM Risk / Return Rank: 99
FTSM Sharpe Ratio Rank: 99
FTSM Sortino Ratio Rank: 99
FTSM Omega Ratio Rank: 99
FTSM Calmar Ratio Rank: 99
FTSM Martin Ratio Rank: 99

VBIL

VBIL Risk / Return Rank: 100
VBIL Sharpe Ratio Rank: 100
VBIL Sortino Ratio Rank: 100
VBIL Omega Ratio Rank: 100
VBIL Calmar Ratio Rank: 99
VBIL Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FTSM vs. VBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Enhanced Short Maturity ETF (FTSM) and Vanguard 0-3 Month Treasury Bill ETF (VBIL). 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.

	FTSM	VBIL	Difference
Sharpe ratio: Return per unit of total volatility	8.77	15.14	-6.37
Sortino ratio: Return per unit of downside risk	20.68	39.04	-18.36
Omega ratio: Gain probability vs. loss probability	4.37	21.07	-16.69
Calmar ratio: Return relative to maximum drawdown	35.72	42.54	-6.82
Martin ratio: Return relative to average drawdown	178.37	531.60	-353.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTSM vs. VBIL - Sharpe Ratio Comparison

The current FTSM Sharpe Ratio is 8.77, which is lower than the VBIL Sharpe Ratio of 15.14. The chart below compares the historical Sharpe Ratios of FTSM and VBIL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FTSM	VBIL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	8.77	15.14	-6.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	7.04	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	2.91	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.96	13.45	-11.49

Drawdowns

FTSM vs. VBIL - Drawdown Comparison

The maximum FTSM drawdown since its inception was -4.12%, which is greater than VBIL's maximum drawdown of -0.09%. Use the drawdown chart below to compare losses from any high point for FTSM and VBIL.

Drawdown Indicators

	FTSM	VBIL	Difference
Max Drawdown Largest peak-to-trough decline	-4.12%	-0.09%	-4.03%
Max Drawdown (1Y) Largest decline over 1 year	-0.12%	-0.09%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-0.15%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-0.65%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-4.12%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.22%	-0.00%	-0.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.02%	0.01%	+0.01%

Volatility

FTSM vs. VBIL - Volatility Comparison

First Trust Enhanced Short Maturity ETF (FTSM) has a higher volatility of 0.16% compared to Vanguard 0-3 Month Treasury Bill ETF (VBIL) at 0.06%. This indicates that FTSM's price experiences larger fluctuations and is considered to be riskier than VBIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTSM	VBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.16%	0.06%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	0.35%	0.16%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	0.48%	0.26%	+0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.49%	0.30%	+0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.88%	0.30%	+0.58%

FTSM vs. VBIL - Expense Ratio Comparison

FTSM has a 0.44% expense ratio, which is higher than VBIL's 0.07% expense ratio.

Dividends

FTSM vs. VBIL - Dividend Comparison

FTSM's dividend yield for the trailing twelve months is around 4.16%, more than VBIL's 3.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTSM First Trust Enhanced Short Maturity ETF	4.16%	4.28%	4.91%	4.62%	1.62%	0.39%	1.20%	2.38%	2.14%	1.49%	1.03%	0.48%
VBIL Vanguard 0-3 Month Treasury Bill ETF	3.65%	3.12%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTSM and VBIL in my portfolio?

FTSM and VBIL have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTSM or VBIL?

FTSM has higher volatility (0.16%) compared to VBIL (0.06%). In terms of maximum drawdown, FTSM dropped -4.12% vs VBIL's -0.09%.

Which ETF is better, FTSM or VBIL?

On 1-year performance, FTSM leads with 4.15% vs 3.93% for VBIL. On fees, VBIL is cheaper at 0.07% per year. On volatility, VBIL has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTSM or VBIL?

Over the 1-year period, FTSM has performed better with a 4.15% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTSM or VBIL?

VBIL is cheaper with a 0.07% expense ratio, compared with 0.44% for FTSM.

Which ETF pays a higher dividend yield, FTSM or VBIL?

FTSM has the higher dividend yield at 4.16%, compared with 3.65% for VBIL.

What is the main difference between FTSM and VBIL?

They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.44% for FTSM and 0.07% for VBIL.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (15.14 vs 8.77), 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.