Dividend comparison

USFR vs VBIL: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for WisdomTree Floating Rate Treasury Fund and Vanguard 0-3 Month Treasury Bill ETF, side by side. Updated October 21, 2026.

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USFR vs VBIL: key differences
The short answer, from the latest data on this page.
  • Fees. VBIL is cheaper at 0.06% a year versus 0.15% for USFR. On $10,000 that is $9 a year less in fees.
  • Income. USFR pays more income, yielding 3.72% over the last twelve months versus 3.50% for VBIL. That is about $22 more a year on $10,000. Both pay monthly.
  • Performance. Over the last 1 year, USFR returned 4.0% versus 0.8% for VBIL, with dividends reinvested. $10,000 would have grown to $10,404 in USFR and $10,080 in VBIL.
  • Risk. Their worst declines over the last 1 year were similar: -0.4% for USFR and -0.6% for VBIL from peak to trough.
  • Diversification. VBIL holds 27 positions and USFR holds 6.

Bottom line: USFR fits better if you care most about stronger 1-year returns. VBIL fits better if you care most about lower fees and broader diversification.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricUSFR
WisdomTree Floating Rate Treasury Fund
VBIL
Vanguard 0-3 Month Treasury Bill ETF
Dividend yield (TTM)3.72%3.50%
Dividend / share (TTM)$1.88$2.65
Payout frequencyMonthlyMonthly
Last dividend$0.1582 on Sep 29, 2026$0.2177 on Oct 5, 2026
Ex-dividend dateSep 25, 2026Oct 1, 2026
Dividend growth (CAGR)318.5% over 4 yrs—
Price$50.50$75.66
Beta-0.02-0.01
Max drawdown (5Y)-0.4%-0.6%
Market cap$17.79B$9.41B
ExchangeAMEXNASDAQ
Expense ratio0.15%0.06%
Assets under management$21.25B$12.80B
Number of holdings627
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

USFR

$31.00/mo

$372 /yr at 3.72% yield

VBIL

$29.17/mo

$350 /yr at 3.50% yield

Dividend history
Total dividends paid per share in each calendar year. USFR pays monthly; VBIL pays monthly.
YearUSFRVBIL
2025$2.0860—
2024$2.5996—
2023$2.5718—
2022$0.8956—
2021$0.0068—
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 USFR vs VBIL actually do

USFR
A WisdomTree fund holding US Treasury floating rate notes rather than fixed-rate bills.

Treasury FRNs are two-year securities whose coupon resets weekly against the 13-week Treasury bill auction, so the fund's income adjusts to rate changes through the coupon itself instead of by rolling into new bills. In practice that makes it respond to a rate move slightly faster than a bill ladder does. The trade-off is a smaller, less liquid corner of the Treasury market and a modest amount of price movement that a portfolio of near-maturity bills does not have.

Suits a cash holder who wants income that resets quickly and is comfortable with a less mainstream instrument. Offers no advantage over a plain bill fund once short rates stop moving, and it is not a place to seek return.

Capital preservation

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Feb 11, 2025 would now be worth $10,596 in USFR and $10,370 in VBIL.
PeriodUSFRVBIL
1 month0.34%0.03%
3 months1.02%0.05%
Year to date3.17%0.30%
1 year4.04%0.80%
3 years13.30%—
5 years20.38%—
  • USFR
  • VBIL
10010310620252026106104

Both series indexed to 100 on 2025-02-11 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.
  • USFR
  • VBIL
0%25%50%75%100%Cash & Others100.0%100.0%Financial Services100.0%

Quick verdict

USFR fits better if you care most about stronger 1-year returns. VBIL fits better if you care most about lower fees and broader diversification. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is USFR or VBIL better for dividend income?
It depends on your goals. USFR currently yields 3.72% Trailing Twelve Months (TTM) while VBIL yields 3.50%. 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 USFR and VBIL?
WisdomTree Floating Rate Treasury Fund (USFR) is an ETF listed on AMEX. Vanguard 0-3 Month Treasury Bill ETF (VBIL) 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 cheaper, USFR or VBIL?
VBIL has the lower expense ratio. USFR charges 0.15% a year and VBIL charges 0.06%, a difference of $9 a year on a $10,000 investment.
Which has performed better, USFR or VBIL?
Over the last 1 year, USFR has the higher total return with dividends reinvested: USFR returned 4.0% and VBIL returned 0.8%. Past performance does not predict future returns.
Which is riskier, USFR or VBIL?
Measured by the worst peak-to-trough decline over the last five years, VBIL has been riskier: USFR fell as much as 0.4% and VBIL as much as 0.6%. Their betas are -0.02 and -0.01.
How often do USFR and VBIL pay dividends?
Both pay monthly. The most recent payments were $0.1582 for USFR and $0.2177 for VBIL.
How much income does $10,000 in USFR vs VBIL generate?
At current TTM yields, $10,000 in USFR would generate roughly $31.00 per month ($372 annually). The same amount in VBIL would produce about $29.17 per month ($350 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both USFR and VBIL?
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 USFR vs VBIL with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how USFR and VBIL 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.