VBIL vs. VGUS

Last updated Jun 20, 2026

VBIL (Vanguard 0-3 Month Treasury Bill ETF) and VGUS (Vanguard Ultra-Short Treasury ETF) are both Ultrashort Bond funds from Vanguard - VBIL tracks the Bloomberg US Treasury Bills 0-3 Months Index while VGUS tracks the Bloomberg Short Treasury Index. Both are passively managed. Over the past year, VBIL returned 3.94% vs 3.88% for VGUS. At a 0.32 correlation, their price movements are largely independent. Both charge a 0.07% expense ratio.

Performance

VBIL vs. VGUS - 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 Ultra-Short Treasury ETF (VGUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBIL achieves a 1.67% return, which is significantly higher than VGUS's 1.58% return.

VBIL

• 1D: 0.03%
• 1M: 0.32%
• YTD: 1.67%
• 6M: 1.79%
• 1Y: 3.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGUS

• 1D: 0.01%
• 1M: 0.26%
• YTD: 1.58%
• 6M: 1.68%
• 1Y: 3.88%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VBIL vs. VGUS - Yearly Performance Comparison

	2026 (YTD)	2025
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.67%	3.73%
VGUS Vanguard Ultra-Short Treasury ETF	1.58%	3.78%

Correlation

The correlation between VBIL and VGUS is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	0.32

Return for Risk

VBIL vs. VGUS — 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

VGUS

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

VBIL vs. VGUS - 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 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.

	VBIL	VGUS	Difference
Sharpe ratio: Return per unit of total volatility	17.96	11.91	+6.04
Sortino ratio: Return per unit of downside risk	112.58	34.37	+78.21
Omega ratio: Gain probability vs. loss probability	39.92	10.57	+29.35
Calmar ratio: Return relative to maximum drawdown	298.50	53.60	+244.90
Martin ratio: Return relative to average drawdown	1,822.09	405.79	+1,416.31

VBIL vs. VGUS - Sharpe Ratio Comparison

The current VBIL Sharpe Ratio is 17.96, which is higher than the VGUS Sharpe Ratio of 11.91. The chart below compares the historical Sharpe Ratios of VBIL 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

VBIL vs. VGUS - Drawdown Comparison

The maximum VBIL drawdown since its inception was -0.09%, which is greater than VGUS's maximum drawdown of -0.07%. Use the drawdown chart below to compare losses from any high point for VBIL and VGUS.

Drawdown Indicators

	VBIL	VGUS	Difference
Max Drawdown Largest peak-to-trough decline	-0.09%	-0.07%	-0.02%
Max Drawdown (1Y) Largest decline over 1 year	-0.01%	-0.07%	+0.06%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.00%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.01%	-0.01%

Volatility

VBIL vs. VGUS - Volatility Comparison

The current volatility for Vanguard 0-3 Month Treasury Bill ETF (VBIL) is 0.05%, while Vanguard Ultra-Short Treasury ETF (VGUS) has a volatility of 0.12%. This indicates that VBIL 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

	VBIL	VGUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.05%	0.12%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	0.16%	0.18%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	0.25%	0.33%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.30%	0.34%	-0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.30%	0.34%	-0.04%

VBIL vs. VGUS - Expense Ratio Comparison

Both VBIL 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

VBIL vs. VGUS - Dividend Comparison

VBIL's dividend yield for the trailing twelve months is around 3.65%, more than VGUS's 3.60% yield.

Position	TTM	2025
VBIL Vanguard 0-3 Month Treasury Bill ETF	3.65%	3.12%
VGUS Vanguard Ultra-Short Treasury ETF	3.60%	3.12%

Frequently Asked Questions

Can I hold both VBIL and VGUS in my portfolio?

VBIL and VGUS have a correlation of 0.33, 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 VGUS?

VGUS has higher volatility (0.12%) compared to VBIL (0.05%). In terms of maximum drawdown, VBIL dropped -0.09% vs VGUS's -0.07%.

Which ETF is better, VBIL or VGUS?

On 1-year performance, VBIL leads with 3.94% vs 3.88% for VGUS. 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, VBIL or VGUS?

Over the 1-year period, VBIL has performed better with a 3.94% return vs 3.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBIL or VGUS?

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

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

VBIL has the higher dividend yield at 3.65%, compared with 3.60% for VGUS.

What is the main difference between VBIL and VGUS?

VBIL tracks Bloomberg US Treasury Bills 0-3 Months Index, while VGUS tracks Bloomberg Short Treasury Index.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (17.96 vs 11.91), 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.