MGC vs. USMV

Last updated Jul 15, 2026

MGC (Vanguard Mega Cap ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both Large Cap Blend Equities funds - MGC tracks the CRSP US Mega Cap Index while USMV tracks the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 10 years, MGC returned 15.94%/yr vs 9.48%/yr for USMV. Their correlation of 0.81 suggests significant overlap in exposure. MGC charges 0.05%/yr vs 0.15%/yr for USMV.

Performance

MGC vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap ETF (MGC) and iShares MSCI USA Min Vol Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGC achieves a 10.28% return, which is significantly higher than USMV's 3.64% return. Over the past 10 years, MGC has outperformed USMV with an annualized return of 15.94%, while USMV has yielded a comparatively lower 9.48% annualized return.

MGC

• 1D: 0.45%
• 1M: 1.71%
• 6M: 8.86%
• YTD: 10.28%
• 1Y: 22.50%
• 3Y*: 21.64%
• 5Y*: 13.67%
• 10Y*: 15.94%

USMV

• 1D: -0.96%
• 1M: 1.18%
• 6M: 3.50%
• YTD: 3.64%
• 1Y: 5.50%
• 3Y*: 11.07%
• 5Y*: 6.93%
• 10Y*: 9.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MGC vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGC Vanguard Mega Cap ETF	10.28%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	31.14%	-3.45%	22.61%
USMV iShares MSCI USA Min Vol Factor ETF	3.64%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	1.33%	18.91%

Correlation

The correlation between MGC and USMV is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.81

Over the past year, the correlation between MGC and USMV has dropped to 0.40 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

MGC vs. USMV - Sectors Allocation Comparison

Sectors	MGC	USMV
Technology	42.9%	33.9%
Communication Services	12.3%	6.2%
Financial Services	10.9%	11.7%
Consumer Cyclical	9.8%	5.7%
Healthcare	8.6%	12.6%
Industrials	6.0%	6.1%
Consumer Defensive	4.4%	9.4%
Energy	2.3%	2.7%
Basic Materials	1.1%	2.4%
Real Estate	0.9%	2.5%
Utilities	0.9%	6.9%

Return for Risk

MGC vs. USMV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MGC

MGC Risk / Return Rank: 64
MGC Sharpe Ratio Rank: 66
MGC Sortino Ratio Rank: 64
MGC Omega Ratio Rank: 65
MGC Calmar Ratio Rank: 58
MGC Martin Ratio Rank: 67

USMV

USMV Risk / Return Rank: 22
USMV Sharpe Ratio Rank: 23
USMV Sortino Ratio Rank: 21
USMV Omega Ratio Rank: 20
USMV Calmar Ratio Rank: 23
USMV Martin Ratio Rank: 26

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MGC vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap ETF (MGC) and iShares MSCI USA Min Vol Factor ETF (USMV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MGC	USMV	Difference
Sharpe ratio: Return per unit of total volatility	1.72	0.65	+1.07
Sortino ratio: Return per unit of downside risk	2.37	0.96	+1.41
Omega ratio: Gain probability vs. loss probability	1.31	1.11	+0.19
Calmar ratio: Return relative to maximum drawdown	2.30	0.86	+1.44
Martin ratio: Return relative to average drawdown	9.58	2.80	+6.79

MGC vs. USMV - Sharpe Ratio Comparison

The current MGC Sharpe Ratio is 1.72, which is higher than the USMV Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of MGC and USMV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MGC vs. USMV - Drawdown Comparison

The maximum MGC drawdown since its inception was -52.26%, which is greater than USMV's maximum drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for MGC and USMV.

Drawdown Indicators

	MGC	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-52.26%	-33.10%	-19.16%
Max Drawdown (1Y) Largest decline over 1 year	-9.85%	-6.46%	-3.39%
Max Drawdown (3Y) Largest decline over 3 years	-19.28%	-9.36%	-9.92%
Max Drawdown (5Y) Largest decline over 5 years	-25.74%	-17.93%	-7.81%
Max Drawdown (10Y) Largest decline over 10 years	-33.07%	-33.10%	+0.03%
Current Drawdown Current decline from peak	-1.26%	-1.49%	+0.23%
Average Drawdown Average peak-to-trough decline	-7.16%	-2.87%	-4.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	1.97%	+0.38%

Volatility

MGC vs. USMV - Volatility Comparison

Vanguard Mega Cap ETF (MGC) has a higher volatility of 4.16% compared to iShares MSCI USA Min Vol Factor ETF (USMV) at 2.75%. This indicates that MGC's price experiences larger fluctuations and is considered to be riskier than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGC	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.16%	2.75%	+1.41%
Volatility (6M) Calculated over the trailing 6-month period	10.50%	6.30%	+4.20%
Volatility (1Y) Calculated over the trailing 1-year period	13.15%	8.52%	+4.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.41%	12.37%	+5.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.22%	14.50%	+3.72%

MGC vs. USMV - Expense Ratio Comparison

MGC has a 0.05% expense ratio, which is lower than USMV's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MGC vs. USMV - Dividend Comparison

MGC's dividend yield for the trailing twelve months is around 0.91%, less than USMV's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.91%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
USMV iShares MSCI USA Min Vol Factor ETF	1.49%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%

Frequently Asked Questions

Can I hold both MGC and USMV in my portfolio?

MGC and USMV have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGC or USMV?

MGC has higher volatility (4.16%) compared to USMV (2.75%). In terms of maximum drawdown, MGC dropped -52.26% vs USMV's -33.10%.

Which ETF is better, MGC or USMV?

On 10-year performance, MGC leads with 15.94% vs 9.48% for USMV. On fees, MGC is cheaper at 0.05% per year. On volatility, USMV has been the lower-risk option at 2.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGC or USMV?

Over the 10-year period, MGC has performed better with a 15.94% return vs 9.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGC or USMV?

MGC is cheaper with a 0.05% expense ratio, compared with 0.15% for USMV.

Which ETF pays a higher dividend yield, MGC or USMV?

USMV has the higher dividend yield at 1.49%, compared with 0.91% for MGC.

What is the main difference between MGC and USMV?

MGC tracks CRSP US Mega Cap Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for MGC and 0.15% for USMV.

Which has better risk-adjusted returns?

MGC currently has the higher Sharpe Ratio (1.72 vs 0.65), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.