USFR vs VBIL: Floating Treasury Notes or Short T-Bills?
Two Treasury ETF approaches to short-term income: floating-rate coupons versus a rolling bill portfolio. Neither locks in a permanent distribution rate.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
USFR has outpaced VBIL over the trailing twelve months, posting a 4.07% total return against 3.75%. Measured from Feb 2025 — the start of shared available history — USFR has compounded at 4.08% a year versus 3.95% for VBIL. VBIL has been the steadier holding, though — annualized volatility of 0.2% against 0.3% for USFR. Figures are total returns: price change plus every distribution reinvested.
Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Feb 2025” measures every fund from February 11, 2025 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
Bottom lineUSFR and VBIL are nearly interchangeable — both offer very similar floating rate treasury exposure with very similar cost and risk. The clearest tie-breaker is cost: VBIL is cheaper at 0.06% vs 0.15%.
Weekly rate resets versus rolling Treasury bills
USFR holds Treasury floating-rate notes; VBIL targets Treasury bills with 0-3 months remaining. Both have changing income. Compare effective duration and current yield measures on matching dates, rather than interpreting beta as duration.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
WisdomTree is known for developing thematic and factor-based ETFs that go beyond traditional market-cap weighting approaches. The issuer maintains a broad lineup spanning dividend and income strategies, international equities, commodities, bonds, digital assets, and specialized thematic areas like megatrends and alternatives. WisdomTree's diverse fund family appeals to investors seeking both traditional income exposure and more specialized strategies, with popular tickers across equity, fixed income, and alternative asset classes.
See our curated list of related YouTube videos on USFR.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.
See our curated list of related YouTube videos on VBIL.
USFR (WisdomTree Floating Rate Treasury Fund) and VBIL (Vanguard 0-3 Month Treasury Bill ETF) are both monthly-pay dividend ETFs, but they take different approaches.
USFR offers the higher yield at 3.77% vs 3.45% for VBIL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VBIL is cheaper with an expense ratio of 0.06% compared to 0.15%.
USFR is the larger fund by assets ($19.6B), but assets alone do not establish trading costs or liquidity.
Still deciding? Track USFR & VBIL for free
Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.
On a $10,000 investment, USFR would generate roughly $31.42 cash per distribution, while VBIL would produce $28.75 cash per distribution, at current distribution rates. Both pay monthly distributions.
USFR yield3.77%
VBIL yield3.45%
Cash diff on $10K$2.67
Cost & efficiency
Over 10 years on $10,000, USFR would cost approximately $150 in fees vs $60 for VBIL (simplified, not compounded). The $90.00 difference may be offset by yield or performance.
USFR ER0.15%
VBIL ER0.06%
Strategy & risk
USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index with a bonds approach, while VBIL is an ETF built around ultra short bond exposure. Compare effective duration for rate sensitivity; beta is not a duration measure.
USFR beta-0.02
VBIL beta-0.001
Fund details
USFR is managed by WisdomTree (launched 02/04/2014) with $19.6B in assets. VBIL is managed by Vanguard (launched 02/10/2025) with $12.4B in assets.
Do us a favor — if you found this comparison useful, please share it with a friend researching dividend ETFs.
Frequently asked questions
Does VBIL lock in its current yield, and how often does USFR reset?
VBIL continuously replaces maturing Treasury bills, so the portfolio's income changes with reinvestment rates. The Treasury floating-rate notes held by USFR reset their interest rate weekly; that is different from the fund's distribution schedule. Neither ETF guarantees a fixed yield or share price.
What is the current distribution rate for USFR and VBIL?
USFR currently distributes 3.77% and VBIL 3.45%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is USFR or VBIL better for dividend income?
It depends on your goals. USFR currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
Can I hold both USFR and VBIL?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is USFR or VBIL safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VBIL scores 85, USFR scores 80, so VBIL's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
Which has lower fees, USFR or VBIL?
USFR has an expense ratio of 0.15% while VBIL charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in USFR vs VBIL generate?
At current rates, $10,000 in USFR would generate roughly $31.42 cash per distribution ($377.00 annually). The same in VBIL would produce about $28.75 cash per distribution ($345.00 annually).
Which has performed better historically, USFR or VBIL?
USFR has outpaced VBIL over the trailing twelve months, posting a 4.07% total return against 3.75%. Measured from Feb 2025 — the start of shared available history — USFR has compounded at 4.08% a year versus 3.95% for VBIL. VBIL has been the steadier holding, though — annualized volatility of 0.2% against 0.3% for USFR. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
Lateral filters that include these funds — browse the full peer set on DividendVision.
Still deciding? Compare them against your own portfolio
See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.
