IBTF vs. VGUS

Last updated Aug 4, 2026

IBTF (iShares iBonds Dec 2025 Term Treasury ETF) and VGUS (Vanguard Ultra-Short Treasury ETF) are both exchange-traded funds - IBTF is a Government Bonds fund tracking the ICE 2025 Maturity US Treasury Index, while VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index. Both are passively managed. Over the past year, IBTF returned 1.44% vs 3.78% for VGUS. Their 0.10 correlation means their historical movements had little consistent relationship. Both charge a 0.07% expense ratio.

Performance

IBTF vs. VGUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2025 Term Treasury ETF (IBTF) and Vanguard Ultra-Short Treasury ETF (VGUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBTF

• 1D: 0.00%
• 1M: 0.00%
• 6M: 0.00%
• YTD: 0.00%
• 1Y: 1.44%
• 3Y*: 3.64%
• 5Y*: 0.80%
• 10Y*: —
• ALL TIME*: 1.11%

VGUS

• 1D: 0.02%
• 1M: 0.29%
• 6M: 1.73%
• YTD: 2.04%
• 1Y: 3.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.97%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IBTF iShares iBonds Dec 2025 Term Treasury ETF	$0.00	$0.00	$0.00
VGUS Vanguard Ultra-Short Treasury ETF	$6.38M	$7.76M	$10.61M

IBTF vs. VGUS - Yearly Performance Comparison

	2026 (YTD)	2025
IBTF iShares iBonds Dec 2025 Term Treasury ETF	0.00%	3.48%
VGUS Vanguard Ultra-Short Treasury ETF	2.04%	3.78%

Correlation

The correlation between IBTF and VGUS is 0.06, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.06
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	0.10

Return for Risk

IBTF vs. VGUS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IBTF

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

VGUS

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IBTF vs. VGUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Treasury ETF (IBTF) and Vanguard Ultra-Short Treasury ETF (VGUS). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IBTF	VGUS	Difference
Sharpe ratio: Return per unit of total volatility	5.96	13.08	-7.12
Sortino ratio: Return per unit of downside risk	20.32	36.76	-16.44
Omega ratio: Gain probability vs. loss probability	7.12	11.37	-4.25
Calmar ratio: Return relative to maximum drawdown	39.94	52.18	-12.24
Martin ratio: Return relative to average drawdown	258.91	414.28	-155.37

IBTF vs. VGUS - Sharpe Ratio Comparison

The current IBTF Sharpe Ratio is 5.96, which is lower than the VGUS Sharpe Ratio of 13.08. The chart below compares the historical Sharpe Ratios of IBTF and VGUS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IBTF vs. VGUS - Drawdown Comparison

The maximum IBTF drawdown since its inception was -10.45%, which is greater than VGUS's maximum drawdown of -0.07%. Use the drawdown chart below to compare losses from any high point for IBTF and VGUS.

Drawdown Indicators

	IBTF	VGUS	Difference
Max Drawdown Largest peak-to-trough decline	-10.45%	-0.07%	-10.38%
Max Drawdown (1Y) Largest decline over 1 year	-0.04%	-0.07%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-0.43%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-9.35%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-3.24%	0.00%	-3.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	0.01%	0.00%

Volatility

IBTF vs. VGUS - Volatility Comparison

The current volatility for iShares iBonds Dec 2025 Term Treasury ETF (IBTF) is 0.00%, while Vanguard Ultra-Short Treasury ETF (VGUS) has a volatility of 0.05%. This indicates that IBTF experiences smaller price fluctuations and is considered to be less risky than VGUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBTF	VGUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	0.05%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	0.06%	0.18%	-0.12%
Volatility (1Y) Calculated over the trailing 1-year period	0.29%	0.29%	0.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.35%	0.33%	+2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	0.33%	+2.20%

IBTF vs. VGUS - Expense Ratio Comparison

Both IBTF and VGUS have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

IBTF vs. VGUS - Dividend Comparison

IBTF's dividend yield for the trailing twelve months is around 1.37%, less than VGUS's 3.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
IBTF iShares iBonds Dec 2025 Term Treasury ETF	1.37%	3.83%	4.32%	4.03%	1.93%	0.57%	0.59%
VGUS Vanguard Ultra-Short Treasury ETF	3.60%	3.12%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBTF and VGUS in my portfolio?

IBTF and VGUS have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBTF or VGUS?

VGUS has higher volatility (0.05%) compared to IBTF (0.00%). In terms of maximum drawdown, IBTF dropped -10.45% vs VGUS's -0.07%.

Which ETF is better, IBTF or VGUS?

On 1-year performance, VGUS leads with 3.78% vs 1.44% for IBTF. Both ETFs have the same 0.07% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBTF or VGUS?

Over the 1-year period, VGUS has performed better with a 3.78% return vs 1.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBTF or VGUS?

IBTF and VGUS have the same expense ratio: 0.07% per year.

Which ETF pays a higher dividend yield, IBTF or VGUS?

VGUS has the higher dividend yield at 3.60%, compared with 1.37% for IBTF.

What is the main difference between IBTF and VGUS?

IBTF is categorized as Government Bonds, while VGUS is Ultrashort Bond. IBTF tracks ICE 2025 Maturity US Treasury Index, while VGUS tracks Bloomberg Short Treasury Index. They also come from different issuers: iShares and Vanguard.

Which has better risk-adjusted returns?

VGUS currently has the higher Sharpe Ratio (13.08 vs 5.96), 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.