Dividend comparison

BIL vs VMFXX: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street SPDR Bloomberg 1-3 Month T-Bill ETF and Vanguard Federal Money Market Fund, side by side. Updated October 21, 2026.

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BIL vs VMFXX: key differences
The short answer, from the latest data on this page.
  • Income. Their trailing yields are almost the same: 3.66% for BIL and 3.68% for VMFXX. Both pay monthly.
  • Risk. Their worst declines over the last 5 years were similar: -0.3% for BIL and 0.0% for VMFXX from peak to trough.
  • Diversification. BIL holds 34 positions and VMFXX holds 21.
  • Dividend growth. VMFXX grew its yearly payout 345.2% a year over the last 3 years, versus 45.1% for BIL.

Bottom line: BIL fits better if you care most about broader diversification. VMFXX fits better if you care most about faster dividend growth.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricBIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
VMFXX
Vanguard Federal Money Market Fund
Dividend yield (TTM)3.66%3.68%
Dividend / share (TTM)$3.35$0.04
Payout frequencyMonthlyMonthly
Last dividend$0.2632 on Oct 6, 2026$0.0030 on Oct 1, 2026
Ex-dividend dateOct 1, 2026Sep 30, 2026
Dividend growth (CAGR)45.1% over 3 yrs345.2% over 4 yrs
Price$91.58$1.00
Beta0.000.00
Max drawdown (5Y)-0.3%0.0%
Market cap$51.19B—
ExchangeAMEXNASDAQ
Expense ratio0.14%—
Assets under management$51.17B—
Number of holdings3421
Top 10 concentration—6.2%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

BIL

$30.51/mo

$366 /yr at 3.66% yield

VMFXX

$30.63/mo

$368 /yr at 3.68% yield

Dividend history
Total dividends paid per share in each calendar year. BIL pays monthly; VMFXX pays monthly.
YearBILVMFXX
2025$3.7727$0.0420
2024$4.5966$0.0518
2023$4.5009$0.0486
2022$1.2361$0.0120
2021—$0.0001
Strategy: Cash equivalent
Funds holding short-dated US government paper, where the objective is that the principal is there when you need it. Yield follows short-term interest rates with a short lag rather than being locked in, so income falls when the central bank cuts and rises when it hikes. Because the underlying holdings are nearly identical across providers, the expense ratio comes almost directly out of what you receive.

There is no growth here by design, and purchasing power erodes whenever the after-tax yield sits below inflation.

What BIL vs VMFXX actually do

BIL
State Street's Treasury bill fund, holding bills with one to three months left to maturity.

It tracks a Bloomberg index of 1 to 3 month US Treasury bills and works the same way as its peers: constant rollover, a yield that follows the short end of the curve, and monthly distributions. It launched in 2007, well before the current crop of cash ETFs, and carries a higher expense ratio than the newer entrants. On a product where every fund holds nearly identical government paper, that fee gap comes almost directly out of the yield you receive.

Suits anyone needing a liquid cash holding, particularly where a platform makes it the cheapest or most accessible option. Where an equivalent bill fund charges less, there is little in the portfolio itself to justify the difference.

Capital preservation

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Jun 22, 2026 would now be worth $10,120 in BIL and $10,000 in VMFXX.
PeriodBILVMFXX
1 month0.32%0.00%
3 months0.91%0.00%
Year to date2.89%—
1 year3.67%—
3 years12.88%—
5 years18.87%—
  • BIL
  • VMFXX
1001011012026101100

Both series indexed to 100 on 2026-06-22 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • BIL
  • VMFXX
0%25%50%75%100%Cash & Others100.0%Government99.8%
Top 10 holdings
Largest positions by portfolio weight.

VMFXX21 holdings total

NameWeight
CITI.TOCitigroup Global Markets. 10/01/20261.83%
BNP.SWBNP Paribas SA 07/29/20261.22%
DBDeutsche Bank Securities. 10/01/20260.65%
BBVABanco Bilbao Vizcaya Argentaria SA. 08/03/20260.53%
BNPQYBNP Paribas SA 10/19/20260.43%
SAN.WABanco Santander SA. 10/01/20260.39%
2888.HKStandard Chartered Bank 10/01/20260.35%
KN.PANatixis SA (Paris Branch). 10/01/20260.32%
CM.TOCanadian Imperial Bank of Commerce. 10/21/20260.24%
GSBDGoldman Sachs & Co. 10/01/20260.23%

Quick verdict

BIL fits better if you care most about broader diversification. VMFXX fits better if you care most about faster dividend growth. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is BIL or VMFXX better for dividend income?
It depends on your goals. BIL currently yields 3.66% Trailing Twelve Months (TTM) while VMFXX yields 3.68%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between BIL and VMFXX?
State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) is an ETF listed on AMEX. Vanguard Federal Money Market Fund (VMFXX) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is riskier, BIL or VMFXX?
Measured by the worst peak-to-trough decline over the last five years, BIL has been riskier: BIL fell as much as 0.3% and VMFXX as much as 0.0%. Their betas are 0.00 and 0.00.
How often do BIL and VMFXX pay dividends?
Both pay monthly. The most recent payments were $0.2632 for BIL and $0.0030 for VMFXX.
How much income does $10,000 in BIL vs VMFXX generate?
At current TTM yields, $10,000 in BIL would generate roughly $30.51 per month ($366 annually). The same amount in VMFXX would produce about $30.63 per month ($368 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both BIL and VMFXX?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare BIL vs VMFXX with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how BIL and VMFXX fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.