VUSFX vs. VTBNX

Last updated Jun 4, 2026

VUSFX (Vanguard Ultra-Short-Term Bond Fund Admiral Shares) and VTBNX (Vanguard Total Bond Market II Index Fund) are both Total Bond Market funds from Vanguard. Over the past 10 years, VUSFX returned 2.71%/yr vs 1.55%/yr for VTBNX. At a 0.48 correlation, their price movements are largely independent. VUSFX charges 0.10%/yr vs 0.02%/yr for VTBNX.

Performance

VUSFX vs. VTBNX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX) and Vanguard Total Bond Market II Index Fund (VTBNX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VUSFX achieves a 1.42% return, which is significantly higher than VTBNX's 0.33% return. Over the past 10 years, VUSFX has outperformed VTBNX with an annualized return of 2.71%, while VTBNX has yielded a comparatively lower 1.55% annualized return.

VUSFX

• 1D: 0.00%
• 1M: 0.36%
• YTD: 1.42%
• 6M: 1.76%
• 1Y: 4.51%
• 3Y*: 5.44%
• 5Y*: 3.50%
• 10Y*: 2.71%

VTBNX

• 1D: 0.00%
• 1M: 0.45%
• YTD: 0.33%
• 6M: 0.25%
• 1Y: 5.21%
• 3Y*: 4.01%
• 5Y*: 0.20%
• 10Y*: 1.55%

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

VUSFX vs. VTBNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUSFX Vanguard Ultra-Short-Term Bond Fund Admiral Shares	1.42%	5.11%	6.11%	5.53%	-0.38%	0.08%	2.10%	3.39%	2.10%	1.37%
VTBNX Vanguard Total Bond Market II Index Fund	0.33%	7.18%	1.32%	5.68%	-13.12%	-1.82%	7.39%	8.71%	-0.27%	3.62%

Correlation

The correlation between VUSFX and VTBNX is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jan 25, 2016	0.48

The correlation between VUSFX and VTBNX shifts across timeframes, from 0.48 (all time) to 0.61 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VUSFX vs. VTBNX — Risk / Return Rank

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

VUSFX

VUSFX Risk / Return Rank: 100
VUSFX Sharpe Ratio Rank: 100
VUSFX Sortino Ratio Rank: 100
VUSFX Omega Ratio Rank: 100
VUSFX Calmar Ratio Rank: 100
VUSFX Martin Ratio Rank: 100

VTBNX

VTBNX Risk / Return Rank: 22
VTBNX Sharpe Ratio Rank: 22
VTBNX Sortino Ratio Rank: 24
VTBNX Omega Ratio Rank: 20
VTBNX Calmar Ratio Rank: 25
VTBNX Martin Ratio Rank: 21

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.

VUSFX vs. VTBNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX) and Vanguard Total Bond Market II Index Fund (VTBNX). 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.

	VUSFX	VTBNX	Difference
Sharpe ratio: Return per unit of total volatility	7.69	1.34	+6.35
Sortino ratio: Return per unit of downside risk	15.39	2.03	+13.36
Omega ratio: Gain probability vs. loss probability	4.69	1.23	+3.46
Calmar ratio: Return relative to maximum drawdown	18.20	1.85	+16.35
Martin ratio: Return relative to average drawdown	108.57	5.53	+103.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUSFX vs. VTBNX - Sharpe Ratio Comparison

The current VUSFX Sharpe Ratio is 7.69, which is higher than the VTBNX Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of VUSFX and VTBNX, 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

	VUSFX	VTBNX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.69	1.34	+6.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	4.35	0.03	+4.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	4.00	0.32	+3.69
Sharpe Ratio (All Time) Calculated using the full available price history	4.00	0.38	+3.62

Drawdowns

VUSFX vs. VTBNX - Drawdown Comparison

The maximum VUSFX drawdown since its inception was -1.71%, smaller than the maximum VTBNX drawdown of -18.71%. Use the drawdown chart below to compare losses from any high point for VUSFX and VTBNX.

Drawdown Indicators

	VUSFX	VTBNX	Difference
Max Drawdown Largest peak-to-trough decline	-1.71%	-18.71%	+17.00%
Max Drawdown (1Y) Largest decline over 1 year	-0.25%	-2.83%	+2.58%
Max Drawdown (3Y) Largest decline over 3 years	-0.35%	-5.97%	+5.62%
Max Drawdown (5Y) Largest decline over 5 years	-1.71%	-18.05%	+16.34%
Max Drawdown (10Y) Largest decline over 10 years	-1.71%	-18.71%	+17.00%
Current Drawdown Current decline from peak	0.00%	-2.21%	+2.21%
Average Drawdown Average peak-to-trough decline	-0.15%	-4.87%	+4.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.04%	0.95%	-0.91%

Volatility

VUSFX vs. VTBNX - Volatility Comparison

The current volatility for Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX) is 0.13%, while Vanguard Total Bond Market II Index Fund (VTBNX) has a volatility of 1.33%. This indicates that VUSFX experiences smaller price fluctuations and is considered to be less risky than VTBNX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUSFX	VTBNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.13%	1.33%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	0.41%	2.81%	-2.40%
Volatility (1Y) Calculated over the trailing 1-year period	0.59%	3.93%	-3.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.81%	5.96%	-5.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.68%	4.93%	-4.25%

VUSFX vs. VTBNX - Expense Ratio Comparison

VUSFX has a 0.10% expense ratio, which is higher than VTBNX's 0.02% 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

VUSFX vs. VTBNX - Dividend Comparison

VUSFX's dividend yield for the trailing twelve months is around 4.53%, more than VTBNX's 4.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
VUSFX Vanguard Ultra-Short-Term Bond Fund Admiral Shares	4.53%	4.73%	5.52%	4.15%	1.38%	0.53%	1.62%	2.68%	2.23%	1.52%	1.07%

Frequently Asked Questions

Can I hold both VUSFX and VTBNX in my portfolio?

VUSFX and VTBNX have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUSFX or VTBNX?

VTBNX has higher volatility (1.33%) compared to VUSFX (0.13%). In terms of maximum drawdown, VUSFX dropped -1.71% vs VTBNX's -18.71%.

Which has better risk-adjusted returns?

VUSFX currently has the higher Sharpe Ratio (7.69 vs 1.34), 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.