VBIL vs. BND

Last updated Jun 3, 2026

VBIL (Vanguard 0-3 Month Treasury Bill ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VBIL is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bills 0-3 Months Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past year, VBIL returned 3.93% vs 5.19% for BND. At a correlation of -0.01, they often move in opposite directions. VBIL charges 0.07%/yr vs 0.03%/yr for BND.

Performance

VBIL vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard 0-3 Month Treasury Bill ETF (VBIL) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBIL achieves a 1.48% return, which is significantly higher than BND's 0.46% return.

VBIL

• 1D: 0.01%
• 1M: 0.29%
• YTD: 1.48%
• 6M: 1.80%
• 1Y: 3.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BND

• 1D: 0.03%
• 1M: 0.12%
• YTD: 0.46%
• 6M: 0.46%
• 1Y: 5.19%
• 3Y*: 4.03%
• 5Y*: 0.20%
• 10Y*: 1.60%

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

VBIL vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.48%	3.71%
BND Vanguard Total Bond Market ETF	0.46%	6.25%

Correlation

The correlation between VBIL and BND 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 (All Time) Calculated using the full available price history since Feb 12, 2025	-0.01

Return for Risk

VBIL vs. BND — 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: 99
VBIL Martin Ratio Rank: 100

BND

BND Risk / Return Rank: 38
BND Sharpe Ratio Rank: 38
BND Sortino Ratio Rank: 40
BND Omega Ratio Rank: 36
BND Calmar Ratio Rank: 37
BND Martin Ratio Rank: 36

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. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 0-3 Month Treasury Bill ETF (VBIL) and Vanguard Total Bond Market ETF (BND). 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.

	VBIL	BND	Difference
Sharpe ratio Return per unit of total volatility	15.13	1.38	+13.75
Sortino ratio Return per unit of downside risk	39.04	2.07	+36.98
Omega ratio Gain probability vs. loss probability	21.07	1.24	+19.82
Calmar ratio Return relative to maximum drawdown	42.56	1.85	+40.71
Martin ratio Return relative to average drawdown	532.95	5.66	+527.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBIL vs. BND - Sharpe Ratio Comparison

The current VBIL Sharpe Ratio is 15.13, which is higher than the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of VBIL and BND, 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

	VBIL	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	15.13	1.38	+13.75
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.03	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.29	—
Sharpe Ratio (All Time) Calculated using the full available price history	13.42	0.59	+12.84

Drawdowns

VBIL vs. BND - Drawdown Comparison

The maximum VBIL drawdown since its inception was -0.09%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VBIL and BND.

Drawdown Indicators

	VBIL	BND	Difference
Max Drawdown Largest peak-to-trough decline	-0.09%	-18.58%	+18.49%
Max Drawdown (1Y) Largest decline over 1 year	-0.09%	-2.68%	+2.59%
Max Drawdown (3Y) Largest decline over 3 years	—	-5.92%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.91%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	0.00%	-2.18%	+2.18%
Average Drawdown Average peak-to-trough decline	-0.00%	-3.06%	+3.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	0.88%	-0.87%

Volatility

VBIL vs. BND - Volatility Comparison

The current volatility for Vanguard 0-3 Month Treasury Bill ETF (VBIL) is 0.06%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.26%. This indicates that VBIL experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBIL	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.06%	1.26%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	0.16%	2.68%	-2.52%
Volatility (1Y) Calculated over the trailing 1-year period	0.26%	3.78%	-3.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.30%	6.02%	-5.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.30%	5.53%	-5.23%

VBIL vs. BND - Expense Ratio Comparison

VBIL has a 0.07% expense ratio, which is higher than BND's 0.03% 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

VBIL vs. BND - Dividend Comparison

VBIL's dividend yield for the trailing twelve months is around 3.65%, less than BND's 3.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.96%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
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 VBIL and BND in my portfolio?

VBIL and BND 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.

Which is riskier, VBIL or BND?

BND has higher volatility (1.26%) compared to VBIL (0.06%). In terms of maximum drawdown, VBIL dropped -0.09% vs BND's -18.58%.

Which ETF is better, VBIL or BND?

On 1-year performance, BND leads with 5.19% vs 3.93% for VBIL. On fees, BND is cheaper at 0.03% 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 BND?

Over the 1-year period, BND has performed better with a 5.19% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBIL or BND?

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

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

BND has the higher dividend yield at 3.96%, compared with 3.65% for VBIL.

What is the main difference between VBIL and BND?

VBIL is categorized as Ultrashort Bond, while BND is Total Bond Market. VBIL tracks Bloomberg US Treasury Bills 0-3 Months Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.07% for VBIL and 0.03% for BND.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (15.13 vs 1.38), 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.