SCHO vs. VBIL

Last updated Jun 16, 2026

SCHO (Schwab Short-Term U.S. Treasury ETF) and VBIL (Vanguard 0-3 Month Treasury Bill ETF) are both exchange-traded funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while VBIL is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bills 0-3 Months Index. Both are passively managed. Over the past year, SCHO returned 3.47% vs 3.93% for VBIL. At a 0.08 correlation, their price movements are largely independent. SCHO charges 0.03%/yr vs 0.07%/yr for VBIL.

Performance

SCHO vs. VBIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Short-Term U.S. Treasury ETF (SCHO) and Vanguard 0-3 Month Treasury Bill ETF (VBIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHO achieves a 0.58% return, which is significantly lower than VBIL's 1.62% return.

SCHO

• 1D: 0.04%
• 1M: 0.31%
• YTD: 0.58%
• 6M: 0.82%
• 1Y: 3.47%
• 3Y*: 4.27%
• 5Y*: 1.86%
• 10Y*: 1.71%

VBIL

• 1D: 0.03%
• 1M: 0.28%
• YTD: 1.62%
• 6M: 1.80%
• 1Y: 3.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCHO vs. VBIL - Yearly Performance Comparison

	2026 (YTD)	2025
SCHO Schwab Short-Term U.S. Treasury ETF	0.58%	4.68%
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.62%	3.73%

Correlation

The correlation between SCHO and VBIL is 0.05, 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	0.05
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	0.08

Return for Risk

SCHO vs. VBIL — Risk / Return Rank

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

SCHO

SCHO Risk / Return Rank: 89
SCHO Sharpe Ratio Rank: 88
SCHO Sortino Ratio Rank: 93
SCHO Omega Ratio Rank: 90
SCHO Calmar Ratio Rank: 83
SCHO Martin Ratio Rank: 88

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.

SCHO vs. VBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) 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.

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.

	SCHO	VBIL	Difference
Sharpe ratio: Return per unit of total volatility	2.56	15.06	-12.50
Sortino ratio: Return per unit of downside risk	4.19	39.04	-34.85
Omega ratio: Gain probability vs. loss probability	1.52	21.06	-19.54
Calmar ratio: Return relative to maximum drawdown	4.06	42.54	-38.47
Martin ratio: Return relative to average drawdown	17.10	531.57	-514.47

SCHO vs. VBIL - Sharpe Ratio Comparison

The current SCHO Sharpe Ratio is 2.56, which is lower than the VBIL Sharpe Ratio of 15.06. The chart below compares the historical Sharpe Ratios of SCHO 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.

Drawdowns

SCHO vs. VBIL - Drawdown Comparison

The maximum SCHO drawdown since its inception was -5.69%, which is greater than VBIL's maximum drawdown of -0.09%. Use the drawdown chart below to compare losses from any high point for SCHO and VBIL.

Drawdown Indicators

	SCHO	VBIL	Difference
Max Drawdown Largest peak-to-trough decline	-5.69%	-0.09%	-5.60%
Max Drawdown (1Y) Largest decline over 1 year	-0.86%	-0.09%	-0.77%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-5.69%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-5.69%	—	—
Current Drawdown Current decline from peak	-0.10%	0.00%	-0.10%
Average Drawdown Average peak-to-trough decline	-0.61%	-0.00%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.01%	+0.19%

Volatility

SCHO vs. VBIL - Volatility Comparison

Schwab Short-Term U.S. Treasury ETF (SCHO) has a higher volatility of 0.43% compared to Vanguard 0-3 Month Treasury Bill ETF (VBIL) at 0.05%. This indicates that SCHO'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

	SCHO	VBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	0.05%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	0.93%	0.16%	+0.77%
Volatility (1Y) Calculated over the trailing 1-year period	1.36%	0.26%	+1.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	0.30%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.56%	0.30%	+1.26%

SCHO vs. VBIL - Expense Ratio Comparison

SCHO has a 0.03% expense ratio, which is lower than VBIL's 0.07% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHO vs. VBIL - Dividend Comparison

SCHO's dividend yield for the trailing twelve months is around 3.90%, more than VBIL's 3.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHO Schwab Short-Term U.S. Treasury ETF	3.90%	4.06%	4.29%	3.76%	1.34%	0.41%	1.27%	2.27%	1.60%	1.12%	0.82%	0.68%
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 SCHO and VBIL in my portfolio?

SCHO and VBIL have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHO or VBIL?

SCHO has higher volatility (0.43%) compared to VBIL (0.05%). In terms of maximum drawdown, SCHO dropped -5.69% vs VBIL's -0.09%.

Which ETF is better, SCHO or VBIL?

On 1-year performance, VBIL leads with 3.93% vs 3.47% for SCHO. On fees, SCHO is cheaper at 0.03% per year. On volatility, VBIL has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHO or VBIL?

Over the 1-year period, VBIL has performed better with a 3.93% return vs 3.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHO or VBIL?

SCHO is cheaper with a 0.03% expense ratio, compared with 0.07% for VBIL.

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

SCHO has the higher dividend yield at 3.90%, compared with 3.65% for VBIL.

What is the main difference between SCHO and VBIL?

SCHO is categorized as Government Bonds, while VBIL is Ultrashort Bond. SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while VBIL tracks Bloomberg US Treasury Bills 0-3 Months Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.03% for SCHO and 0.07% for VBIL.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (15.06 vs 2.56), 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.