VTBNX vs. VMFXX

Last updated Jun 13, 2026

VTBNX (Vanguard Total Bond Market II Index Fund) and VMFXX (Vanguard Federal Money Market Fund) are both mutual funds - VTBNX is a Total Bond Market fund managed by Vanguard, while VMFXX is a Money Market fund managed by Vanguard. Over the past 5 years, VTBNX returned 0.04%/yr vs 2.39%/yr for VMFXX. At a 0.19 correlation, their price movements are largely independent. VTBNX charges 0.02%/yr vs 0.11%/yr for VMFXX.

Performance

VTBNX vs. VMFXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market II Index Fund (VTBNX) and Vanguard Federal Money Market Fund (VMFXX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTBNX achieves a 0.33% return, which is significantly lower than VMFXX's 1.50% return.

VTBNX

• 1D: 0.53%
• 1M: 0.56%
• YTD: 0.33%
• 6M: 0.98%
• 1Y: 4.88%
• 3Y*: 4.05%
• 5Y*: 0.04%
• 10Y*: 1.51%

VMFXX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.50%
• 6M: 1.82%
• 1Y: 3.95%
• 3Y*: 3.35%
• 5Y*: 2.39%
• 10Y*: —

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

VTBNX vs. VMFXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VTBNX Vanguard Total Bond Market II Index Fund	0.33%	7.18%	1.32%	5.68%	-13.12%	1.15%
VMFXX Vanguard Federal Money Market Fund	1.50%	4.24%	1.64%	4.64%	0.00%	0.00%

Correlation

The correlation between VTBNX and VMFXX is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.19

The correlation between VTBNX and VMFXX shifts across timeframes, from 0.19 (all time) to 0.30 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VTBNX vs. VMFXX — Risk / Return Rank

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

VTBNX

VTBNX Risk / Return Rank: 29
VTBNX Sharpe Ratio Rank: 30
VTBNX Sortino Ratio Rank: 33
VTBNX Omega Ratio Rank: 27
VTBNX Calmar Ratio Rank: 32
VTBNX Martin Ratio Rank: 26

VMFXX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

VTBNX vs. VMFXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market II Index Fund (VTBNX) and Vanguard Federal Money Market Fund (VMFXX). 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.

	VTBNX	VMFXX	Difference
Sharpe ratio: Return per unit of total volatility	1.26	3.67	-2.42
Sortino ratio: Return per unit of downside risk	1.91	—	—
Omega ratio: Gain probability vs. loss probability	1.22	—	—
Calmar ratio: Return relative to maximum drawdown	1.73	—	—
Martin ratio: Return relative to average drawdown	4.97	—	—

VTBNX vs. VMFXX - Sharpe Ratio Comparison

The current VTBNX Sharpe Ratio is 1.26, which is lower than the VMFXX Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of VTBNX and VMFXX, 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

VTBNX vs. VMFXX - Drawdown Comparison

The maximum VTBNX drawdown since its inception was -18.71%, which is greater than VMFXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for VTBNX and VMFXX.

Drawdown Indicators

	VTBNX	VMFXX	Difference
Max Drawdown Largest peak-to-trough decline	-18.71%	0.00%	-18.71%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	0.00%	-2.83%
Max Drawdown (3Y) Largest decline over 3 years	-5.97%	0.00%	-5.97%
Max Drawdown (5Y) Largest decline over 5 years	-18.05%	0.00%	-18.05%
Max Drawdown (10Y) Largest decline over 10 years	-18.71%	—	—
Current Drawdown Current decline from peak	-2.21%	0.00%	-2.21%
Average Drawdown Average peak-to-trough decline	-4.86%	0.00%	-4.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	0.00%	+0.98%

Volatility

VTBNX vs. VMFXX - Volatility Comparison

Vanguard Total Bond Market II Index Fund (VTBNX) has a higher volatility of 1.35% compared to Vanguard Federal Money Market Fund (VMFXX) at 0.30%. This indicates that VTBNX's price experiences larger fluctuations and is considered to be riskier than VMFXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTBNX	VMFXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.35%	0.30%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	2.85%	0.79%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	3.90%	1.12%	+2.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.96%	0.94%	+5.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.93%	0.94%	+3.99%

VTBNX vs. VMFXX - Expense Ratio Comparison

VTBNX has a 0.02% expense ratio, which is lower than VMFXX's 0.11% 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

VTBNX vs. VMFXX - Dividend Comparison

VTBNX's dividend yield for the trailing twelve months is around 4.06%, more than VMFXX's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VMFXX Vanguard Federal Money Market Fund	3.87%	4.14%	1.63%	4.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTBNX Vanguard Total Bond Market II Index Fund	4.06%	3.95%	3.77%	3.13%	2.54%	1.82%	3.12%	2.79%	2.56%	2.52%	2.55%

Frequently Asked Questions

Can I hold both VTBNX and VMFXX in my portfolio?

VTBNX and VMFXX have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTBNX or VMFXX?

VTBNX has higher volatility (1.35%) compared to VMFXX (0.30%). In terms of maximum drawdown, VTBNX dropped -18.71% vs VMFXX's 0.00%.

Which has better risk-adjusted returns?

VMFXX currently has the higher Sharpe Ratio (3.67 vs 1.26), 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.