Dividend comparison
VBIL vs VMFXX: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard 0-3 Month Treasury Bill ETF and Vanguard Federal Money Market Fund, side by side. Updated October 21, 2026.
VBIL vs VMFXX: key differences
The short answer, from the latest data on this page.
- Income. VMFXX pays more income, yielding 3.68% over the last twelve months versus 3.50% for VBIL. That is about $18 more a year on $10,000. Both pay monthly.
- Risk. Their worst declines over the last 5 years were similar: -0.6% for VBIL and 0.0% for VMFXX from peak to trough.
- Diversification. VBIL holds 27 positions and VMFXX holds 21.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VBIL Vanguard 0-3 Month Treasury Bill ETF | VMFXX Vanguard Federal Money Market Fund |
|---|---|---|
| Dividend yield (TTM) | 3.50% | 3.68% |
| Dividend / share (TTM) | $2.65 | $0.04 |
| Payout frequency | Monthly | Monthly |
| Last dividend | $0.2177 on Oct 5, 2026 | $0.0030 on Oct 1, 2026 |
| Ex-dividend date | Oct 1, 2026 | Sep 30, 2026 |
| Dividend growth (CAGR) | — | 345.2% over 4 yrs |
| Price | $75.66 | $1.00 |
| Beta | -0.01 | 0.00 |
| Max drawdown (5Y) | -0.6% | 0.0% |
| Market cap | $9.41B | — |
| Exchange | NASDAQ | NASDAQ |
| Expense ratio | 0.06% | — |
| Assets under management | $12.80B | — |
| Number of holdings | 27 | 21 |
| Top 10 concentration | — | 6.2% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VBIL
$29.17/mo
$350 /yr at 3.50% yield
VMFXX
$30.63/mo
$368 /yr at 3.68% yield
Dividend history
Total dividends paid per share in each calendar year. VBIL pays monthly; VMFXX pays monthly.
| Year | VBIL | VMFXX |
|---|---|---|
| 2025 | — | $0.0420 |
| 2024 | — | $0.0518 |
| 2023 | — | $0.0486 |
| 2022 | — | $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.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Jun 22, 2026 would now be worth $10,004 in VBIL and $10,000 in VMFXX.
| Period | VBIL | VMFXX |
|---|---|---|
| 1 month | 0.03% | 0.00% |
| 3 months | 0.05% | 0.00% |
| Year to date | 0.30% | — |
| 1 year | 0.80% | — |
| 3 years | — | — |
| 5 years | — | — |
- VBIL
- VMFXX
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.
- VBIL
- VMFXX
Top 10 holdings
Largest positions by portfolio weight.
VMFXX21 holdings total
| Name | Weight |
|---|---|
| CITI.TOCitigroup Global Markets. 10/01/2026 | 1.83% |
| BNP.SWBNP Paribas SA 07/29/2026 | 1.22% |
| DBDeutsche Bank Securities. 10/01/2026 | 0.65% |
| BBVABanco Bilbao Vizcaya Argentaria SA. 08/03/2026 | 0.53% |
| BNPQYBNP Paribas SA 10/19/2026 | 0.43% |
| SAN.WABanco Santander SA. 10/01/2026 | 0.39% |
| 2888.HKStandard Chartered Bank 10/01/2026 | 0.35% |
| KN.PANatixis SA (Paris Branch). 10/01/2026 | 0.32% |
| CM.TOCanadian Imperial Bank of Commerce. 10/21/2026 | 0.24% |
| GSBDGoldman Sachs & Co. 10/01/2026 | 0.23% |
Quick verdict
VMFXX currently posts the higher TTM yield (3.68%). VBIL yields 3.50%; VMFXX yields 3.68%. Choose based on whether you prioritize current cash flow, dividend growth, or total return — then model the holding inside your real portfolio.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how VBIL vs VMFXX fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VBIL or VMFXX better for dividend income?
It depends on your goals. VBIL currently yields 3.50% 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 VBIL and VMFXX?
Vanguard 0-3 Month Treasury Bill ETF (VBIL) is an ETF listed on NASDAQ. 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, VBIL or VMFXX?
Measured by the worst peak-to-trough decline over the last five years, VBIL has been riskier: VBIL fell as much as 0.6% and VMFXX as much as 0.0%. Their betas are -0.01 and 0.00.
How often do VBIL and VMFXX pay dividends?
Both pay monthly. The most recent payments were $0.2177 for VBIL and $0.0030 for VMFXX.
How much income does $10,000 in VBIL vs VMFXX generate?
At current TTM yields, $10,000 in VBIL would generate roughly $29.17 per month ($350 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 VBIL 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 VBIL vs VMFXX with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VBIL 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.