VUSB vs. VUBFX

Last updated Jun 4, 2026

VUSB (Vanguard Ultra-Short Bond ETF) and VUBFX (Vanguard Ultra-Short-Term Bond Fund Investor Shares) are both funds - VUSB is a Ultrashort Bond fund actively managed by Vanguard, while VUBFX is a Total Bond Market fund managed by Vanguard. Over the past 5 years, VUSB returned 3.43%/yr vs 3.40%/yr for VUBFX. A 0.50 correlation means they provide meaningful diversification when combined. VUSB charges 0.10%/yr vs 0.20%/yr for VUBFX.

Performance

VUSB vs. VUBFX - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VUSB having a 1.39% return and VUBFX slightly lower at 1.37%.

VUSB

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

VUBFX

• 1D: 0.00%
• 1M: 0.35%
• YTD: 1.37%
• 6M: 1.75%
• 1Y: 4.40%
• 3Y*: 5.33%
• 5Y*: 3.40%
• 10Y*: 2.61%

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

VUSB vs. VUBFX - 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%
VUBFX Vanguard Ultra-Short-Term Bond Fund Investor Shares	1.37%	5.04%	5.99%	5.43%	-0.53%	-0.06%

Correlation

The correlation between VUSB and VUBFX is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021	0.50

The correlation between VUSB and VUBFX shifts across timeframes, from 0.39 (1 year) to 0.51 (5 years), reflecting how their relationship changes across market environments.

VUSB vs. VUBFX - Sectors Allocation Comparison

Sectors	VUSB	VUBFX
Technology	0.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	100.0%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VUSB vs. VUBFX — 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

VUBFX

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

VUSB vs. VUBFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Bond ETF (VUSB) and Vanguard Ultra-Short-Term Bond Fund Investor Shares (VUBFX). 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	VUBFX	Difference
Sharpe ratio: Return per unit of total volatility	7.10	5.71	+1.39
Sortino ratio: Return per unit of downside risk	13.16	12.83	+0.33
Omega ratio: Gain probability vs. loss probability	3.44	4.52	-1.09
Calmar ratio: Return relative to maximum drawdown	12.43	14.79	-2.35
Martin ratio: Return relative to average drawdown	71.97	83.04	-11.08
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. VUBFX - Sharpe Ratio Comparison

The current VUSB Sharpe Ratio is 7.10, which is comparable to the VUBFX Sharpe Ratio of 5.71. The chart below compares the historical Sharpe Ratios of VUSB and VUBFX, 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	VUBFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.10	5.71	+1.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	4.14	3.47	+0.67
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	3.14	—
Sharpe Ratio (All Time) Calculated using the full available price history	4.09	3.11	+0.99

Drawdowns

VUSB vs. VUBFX - Drawdown Comparison

The maximum VUSB drawdown since its inception was -1.79%, roughly equal to the maximum VUBFX drawdown of -1.86%. Use the drawdown chart below to compare losses from any high point for VUSB and VUBFX.

Drawdown Indicators

	VUSB	VUBFX	Difference
Max Drawdown Largest peak-to-trough decline	-1.79%	-1.86%	+0.07%
Max Drawdown (1Y) Largest decline over 1 year	-0.37%	-0.30%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-0.46%	-0.30%	-0.16%
Max Drawdown (5Y) Largest decline over 5 years	-1.79%	-1.86%	+0.07%
Max Drawdown (10Y) Largest decline over 10 years	—	-1.86%	—
Current Drawdown Current decline from peak	-0.02%	0.00%	-0.02%
Average Drawdown Average peak-to-trough decline	-0.27%	-0.17%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.06%	0.05%	+0.01%

Volatility

VUSB vs. VUBFX - Volatility Comparison

Vanguard Ultra-Short Bond ETF (VUSB) has a higher volatility of 0.18% compared to Vanguard Ultra-Short-Term Bond Fund Investor Shares (VUBFX) at 0.17%. This indicates that VUSB's price experiences larger fluctuations and is considered to be riskier than VUBFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUSB	VUBFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.18%	0.17%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	0.52%	0.54%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	0.65%	0.77%	-0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.83%	0.99%	-0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.82%	0.83%	-0.01%

VUSB vs. VUBFX - Expense Ratio Comparison

VUSB has a 0.10% expense ratio, which is lower than VUBFX's 0.20% 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

VUSB vs. VUBFX - Dividend Comparison

VUSB's dividend yield for the trailing twelve months is around 4.39%, which matches VUBFX's 4.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
VUBFX Vanguard Ultra-Short-Term Bond Fund Investor Shares	4.42%	4.62%	5.42%	4.06%	1.28%	0.43%	1.52%	2.58%	2.13%	1.43%	0.98%
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%

Frequently Asked Questions

Can I hold both VUSB and VUBFX in my portfolio?

VUSB and VUBFX have a correlation of 0.39, 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 VUBFX?

VUSB has higher volatility (0.18%) compared to VUBFX (0.17%). In terms of maximum drawdown, VUSB dropped -1.79% vs VUBFX's -1.86%.

Which has better risk-adjusted returns?

VUSB currently has the higher Sharpe Ratio (7.10 vs 5.71), 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.