VGUS vs. VBIL

Last updated Jun 23, 2026

VGUS (Vanguard Ultra-Short Treasury ETF) and VBIL (Vanguard 0-3 Month Treasury Bill ETF) are both Ultrashort Bond funds from Vanguard - VGUS tracks the Bloomberg Short Treasury Index while VBIL tracks the Bloomberg US Treasury Bills 0-3 Months Index. Both are passively managed. Over the past year, VGUS returned 3.86% vs 3.91% for VBIL. At a 0.32 correlation, their price movements are largely independent. Both charge a 0.07% expense ratio.

Performance

VGUS vs. VBIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short Treasury ETF (VGUS) 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, VGUS achieves a 1.59% return, which is significantly lower than VBIL's 1.70% return.

VGUS

• 1D: 0.01%
• 1M: 0.18%
• YTD: 1.59%
• 6M: 1.69%
• 1Y: 3.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VBIL

• 1D: 0.03%
• 1M: 0.29%
• YTD: 1.70%
• 6M: 1.81%
• 1Y: 3.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGUS vs. VBIL - Yearly Performance Comparison

	2026 (YTD)	2025
VGUS Vanguard Ultra-Short Treasury ETF	1.59%	3.78%
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.70%	3.73%

Correlation

The correlation between VGUS and VBIL is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

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

Return for Risk

VGUS vs. VBIL — Risk / Return Rank

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

VGUS

VGUS Risk / Return Rank: 99
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

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

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.

VGUS vs. VBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Treasury ETF (VGUS) 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.

	VGUS	VBIL	Difference
Sharpe ratio: Return per unit of total volatility	11.86	18.07	-6.21
Sortino ratio: Return per unit of downside risk	34.14	111.81	-77.68
Omega ratio: Gain probability vs. loss probability	10.51	39.66	-29.15
Calmar ratio: Return relative to maximum drawdown	53.22	296.41	-243.19
Martin ratio: Return relative to average drawdown	402.91	1,809.33	-1,406.42

VGUS vs. VBIL - Sharpe Ratio Comparison

The current VGUS Sharpe Ratio is 11.86, which is lower than the VBIL Sharpe Ratio of 18.07. The chart below compares the historical Sharpe Ratios of VGUS 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

VGUS vs. VBIL - Drawdown Comparison

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

Drawdown Indicators

	VGUS	VBIL	Difference
Max Drawdown Largest peak-to-trough decline	-0.07%	-0.09%	+0.02%
Max Drawdown (1Y) Largest decline over 1 year	-0.07%	-0.01%	-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	0.01%	0.00%	+0.01%

Volatility

VGUS vs. VBIL - Volatility Comparison

Vanguard Ultra-Short Treasury ETF (VGUS) has a higher volatility of 0.12% compared to Vanguard 0-3 Month Treasury Bill ETF (VBIL) at 0.05%. This indicates that VGUS'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

	VGUS	VBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.12%	0.05%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	0.18%	0.16%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	0.33%	0.22%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.34%	0.30%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.34%	0.30%	+0.04%

VGUS vs. VBIL - Expense Ratio Comparison

Both VGUS and VBIL 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

VGUS vs. VBIL - Dividend Comparison

VGUS's dividend yield for the trailing twelve months is around 3.60%, less than VBIL's 3.65% 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 VGUS and VBIL in my portfolio?

VGUS and VBIL have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGUS or VBIL?

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

Which ETF is better, VGUS or VBIL?

On 1-year performance, VBIL leads with 3.91% vs 3.86% 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, VGUS or VBIL?

Over the 1-year period, VBIL has performed better with a 3.91% return vs 3.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGUS or VBIL?

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

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

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

What is the main difference between VGUS and VBIL?

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

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (18.07 vs 11.86), 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.