VBIL vs VYM
VBIL vs VYM
Vanguard 0-3 Month Treasury Bill ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VBIL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $9.4B | $79.0B | |
| Dividend Yield | 3.65% | 2.86% | |
| Holdings | 28 | 568 | |
| YTD Return | +1.84% | +15.80% | |
| 1Y Return | +3.52% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 0.7% | 14.6% | |
| Max Drawdown | -0.3% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 7, 2025 | Nov 10, 2006 |
VBIL vs VYM Performance
Vanguard 0-3 Month Treasury Bill ETF (VBIL) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VBIL returned +3.52% while VYM returned +26.12%. Year to date, VBIL is up 1.84% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.7% for VBIL. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -0.3% for VBIL and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBIL charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VBIL currently yields 3.65% against 2.86% for VYM.
Holdings Overlap
VBIL and VYM share 0 holdings out of 560 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBIL or VYM?
VBIL has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBIL or VYM?
Over the past year VBIL returned +3.52% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VBIL annualized +4.61% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VBIL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 0.7% for VBIL. Worst drawdown: VBIL -0.3% vs VYM -58.8%.
Should I hold both VBIL and VYM?
VBIL and VYM have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBIL and VYM?
VBIL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, VBIL or VYM?
VBIL yields 3.65% while VYM yields 2.86%, so VBIL currently pays the higher dividend yield.
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