VBIL vs. BCLO

Last updated Jul 17, 2026

VBIL (Vanguard 0-3 Month Treasury Bill ETF) and BCLO (iShares BBB-B CLO Active ETF) are both exchange-traded funds - VBIL is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bills 0-3 Months Index, while BCLO is a CLO fund tracking the JP Morgan CLOIE High Quality Mezzanine Index. Both are passively managed. Over the past year, VBIL returned 3.87% vs 6.17% for BCLO. At a correlation of -0.04, they often move in opposite directions. VBIL charges 0.07%/yr vs 0.45%/yr for BCLO.

Performance

VBIL vs. BCLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard 0-3 Month Treasury Bill ETF (VBIL) and iShares BBB-B CLO Active ETF (BCLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBIL achieves a 1.93% return, which is significantly lower than BCLO's 3.07% return.

VBIL

• 1D: 0.01%
• 1M: 0.29%
• 6M: 1.81%
• YTD: 1.93%
• 1Y: 3.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BCLO

• 1D: 0.04%
• 1M: 0.08%
• 6M: 2.78%
• YTD: 3.07%
• 1Y: 6.17%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VBIL vs. BCLO - Yearly Performance Comparison

	2026 (YTD)	2025
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.93%	3.73%
BCLO iShares BBB-B CLO Active ETF	3.07%	4.82%

Correlation

The correlation between VBIL and BCLO is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	-0.04

Return for Risk

VBIL vs. BCLO — Risk / Return Rank

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

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: 100
VBIL Martin Ratio Rank: 100

BCLO

BCLO Risk / Return Rank: 89
BCLO Sharpe Ratio Rank: 96
BCLO Sortino Ratio Rank: 96
BCLO Omega Ratio Rank: 97
BCLO Calmar Ratio Rank: 78
BCLO Martin Ratio Rank: 80

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.

VBIL vs. BCLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 0-3 Month Treasury Bill ETF (VBIL) and iShares BBB-B CLO Active ETF (BCLO). 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.

	VBIL	BCLO	Difference
Sharpe ratio: Return per unit of total volatility	18.13	3.06	+15.07
Sortino ratio: Return per unit of downside risk	119.73	4.84	+114.89
Omega ratio: Gain probability vs. loss probability	45.08	1.78	+43.30
Calmar ratio: Return relative to maximum drawdown	292.87	3.23	+289.64
Martin ratio: Return relative to average drawdown	1,937.06	11.92	+1,925.14

VBIL vs. BCLO - Sharpe Ratio Comparison

The current VBIL Sharpe Ratio is 18.13, which is higher than the BCLO Sharpe Ratio of 3.06. The chart below compares the historical Sharpe Ratios of VBIL and BCLO, 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

VBIL vs. BCLO - Drawdown Comparison

The maximum VBIL drawdown since its inception was -0.09%, smaller than the maximum BCLO drawdown of -4.45%. Use the drawdown chart below to compare losses from any high point for VBIL and BCLO.

Drawdown Indicators

	VBIL	BCLO	Difference
Max Drawdown Largest peak-to-trough decline	-0.09%	-4.45%	+4.36%
Max Drawdown (1Y) Largest decline over 1 year	-0.01%	-1.92%	+1.91%
Current Drawdown Current decline from peak	0.00%	-0.07%	+0.07%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.37%	+0.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.52%	-0.52%

Volatility

VBIL vs. BCLO - Volatility Comparison

The current volatility for Vanguard 0-3 Month Treasury Bill ETF (VBIL) is 0.06%, while iShares BBB-B CLO Active ETF (BCLO) has a volatility of 0.34%. This indicates that VBIL experiences smaller price fluctuations and is considered to be less risky than BCLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBIL	BCLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.06%	0.34%	-0.28%
Volatility (6M) Calculated over the trailing 6-month period	0.15%	1.65%	-1.50%
Volatility (1Y) Calculated over the trailing 1-year period	0.21%	2.02%	-1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.29%	4.22%	-3.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.29%	4.22%	-3.93%

VBIL vs. BCLO - Expense Ratio Comparison

VBIL has a 0.07% expense ratio, which is lower than BCLO's 0.45% expense ratio.

Dividends

VBIL vs. BCLO - Dividend Comparison

VBIL's dividend yield for the trailing twelve months is around 3.61%, less than BCLO's 6.57% yield.

Position	TTM	2025
BCLO iShares BBB-B CLO Active ETF	6.57%	6.45%
VBIL Vanguard 0-3 Month Treasury Bill ETF	3.61%	3.12%

Frequently Asked Questions

Can I hold both VBIL and BCLO in my portfolio?

VBIL and BCLO have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBIL or BCLO?

BCLO has higher volatility (0.34%) compared to VBIL (0.06%). In terms of maximum drawdown, VBIL dropped -0.09% vs BCLO's -4.45%.

Which ETF is better, VBIL or BCLO?

On 1-year performance, BCLO leads with 6.17% vs 3.87% 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, VBIL or BCLO?

Over the 1-year period, BCLO has performed better with a 6.17% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBIL or BCLO?

VBIL is cheaper with a 0.07% expense ratio, compared with 0.45% for BCLO.

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

BCLO has the higher dividend yield at 6.57%, compared with 3.61% for VBIL.

What is the main difference between VBIL and BCLO?

VBIL is categorized as Ultrashort Bond, while BCLO is CLO. VBIL tracks Bloomberg US Treasury Bills 0-3 Months Index, while BCLO tracks JP Morgan CLOIE High Quality Mezzanine Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VBIL and 0.45% for BCLO.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (18.13 vs 3.06), 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.