VUSB vs. VTI

Last updated Jun 4, 2026

VUSB (Vanguard Ultra-Short Bond ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VUSB is a Ultrashort Bond fund actively managed by Vanguard, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. VUSB is actively managed, while VTI is passively managed. Over the past 5 years, VUSB returned 3.43%/yr vs 12.69%/yr for VTI. At a 0.14 correlation, their price movements are largely independent. VUSB charges 0.10%/yr vs 0.03%/yr for VTI.

Performance

VUSB vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short Bond ETF (VUSB) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VUSB achieves a 1.39% return, which is significantly lower than VTI's 11.20% return.

VUSB

• 1D: -0.02%
• 1M: 0.40%
• YTD: 1.39%
• 6M: 1.76%
• 1Y: 4.59%
• 3Y*: 5.34%
• 5Y*: 3.43%
• 10Y*: —

VTI

• 1D: -0.72%
• 1M: 4.99%
• YTD: 11.20%
• 6M: 11.09%
• 1Y: 28.18%
• 3Y*: 22.07%
• 5Y*: 12.69%
• 10Y*: 15.05%

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

VUSB vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VUSB Vanguard Ultra-Short Bond ETF	1.39%	5.20%	5.68%	5.52%	-0.36%	0.00%
VTI Vanguard Total Stock Market ETF	11.20%	17.10%	23.81%	26.05%	-19.52%	15.21%

Correlation

The correlation between VUSB and VTI is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.14

VUSB vs. VTI - Sectors Allocation Comparison

Sectors	VUSB	VTI
Technology	0.2%	33.5%
Basic Materials	-	2.0%
Communication Services	-	10.3%
Consumer Cyclical	-	10.0%
Consumer Defensive	-	4.7%
Energy	-	3.7%
Financial Services	-	12.0%
Healthcare	-	9.2%
Industrials	-	9.8%
Real Estate	-	2.4%
Utilities	-	2.3%

Return for Risk

VUSB vs. VTI — Risk / Return Rank

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

VUSB

VUSB Risk / Return Rank: 98
VUSB Sharpe Ratio Rank: 99
VUSB Sortino Ratio Rank: 99
VUSB Omega Ratio Rank: 99
VUSB Calmar Ratio Rank: 97
VUSB Martin Ratio Rank: 98

VTI

VTI Risk / Return Rank: 68
VTI Sharpe Ratio Rank: 69
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 67
VTI Calmar Ratio Rank: 62
VTI Martin Ratio Rank: 75

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.

VUSB vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Bond ETF (VUSB) and Vanguard Total Stock Market ETF (VTI). 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.

	VUSB	VTI	Difference
Sharpe ratio: Return per unit of total volatility	7.10	2.33	+4.77
Sortino ratio: Return per unit of downside risk	13.16	3.18	+9.98
Omega ratio: Gain probability vs. loss probability	3.44	1.42	+2.02
Calmar ratio: Return relative to maximum drawdown	12.43	3.17	+9.26
Martin ratio: Return relative to average drawdown	71.97	14.62	+57.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUSB vs. VTI - Sharpe Ratio Comparison

The current VUSB Sharpe Ratio is 7.10, which is higher than the VTI Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of VUSB and VTI, 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

	VUSB	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.10	2.33	+4.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	4.14	0.73	+3.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.82	—
Sharpe Ratio (All Time) Calculated using the full available price history	4.09	0.51	+3.58

Drawdowns

VUSB vs. VTI - Drawdown Comparison

The maximum VUSB drawdown since its inception was -1.79%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VUSB and VTI.

Drawdown Indicators

	VUSB	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-1.79%	-55.45%	+53.66%
Max Drawdown (1Y) Largest decline over 1 year	-0.37%	-8.92%	+8.55%
Max Drawdown (3Y) Largest decline over 3 years	-0.46%	-19.30%	+18.84%
Max Drawdown (5Y) Largest decline over 5 years	-1.79%	-25.36%	+23.57%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.00%	—
Current Drawdown Current decline from peak	-0.02%	-0.72%	+0.70%
Average Drawdown Average peak-to-trough decline	-0.27%	-8.03%	+7.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.06%	1.93%	-1.87%

Volatility

VUSB vs. VTI - Volatility Comparison

The current volatility for Vanguard Ultra-Short Bond ETF (VUSB) is 0.18%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 2.96%. This indicates that VUSB experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUSB	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.18%	2.96%	-2.78%
Volatility (6M) Calculated over the trailing 6-month period	0.52%	9.13%	-8.61%
Volatility (1Y) Calculated over the trailing 1-year period	0.65%	12.17%	-11.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.83%	17.40%	-16.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.82%	18.30%	-17.48%

VUSB vs. VTI - Expense Ratio Comparison

VUSB has a 0.10% expense ratio, which is higher than VTI'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

VUSB vs. VTI - Dividend Comparison

VUSB's dividend yield for the trailing twelve months is around 4.39%, more than VTI's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%
VUSB Vanguard Ultra-Short Bond ETF	4.39%	4.63%	5.16%	4.45%	1.56%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VUSB and VTI in my portfolio?

VUSB and VTI have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUSB or VTI?

VTI has higher volatility (2.96%) compared to VUSB (0.18%). In terms of maximum drawdown, VUSB dropped -1.79% vs VTI's -55.45%.

Which ETF is better, VUSB or VTI?

On 5-year performance, VTI leads with 12.69% vs 3.43% for VUSB. On fees, VTI is cheaper at 0.03% per year. On volatility, VUSB has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUSB or VTI?

Over the 5-year period, VTI has performed better with a 12.69% return vs 3.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUSB or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.10% for VUSB.

Which ETF pays a higher dividend yield, VUSB or VTI?

VUSB has the higher dividend yield at 4.39%, compared with 1.01% for VTI.

What is the main difference between VUSB and VTI?

VUSB is categorized as Ultrashort Bond, while VTI is Large Cap Blend Equities. Their fees differ too: 0.10% for VUSB and 0.03% for VTI.

Which has better risk-adjusted returns?

VUSB currently has the higher Sharpe Ratio (7.10 vs 2.33), 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.