SMOT vs. USMF

Last updated Jun 4, 2026

SMOT (VanEck Morningstar SMID Moat ETF) and USMF (WisdomTree US Multifactor Fund) are both Mid Cap Blend Equities funds - SMOT tracks the Morningstar US Small-Mid Cap Moat Focus while USMF tracks the WisdomTree US Multifactor Index. Both are passively managed. Over the past 3 years, SMOT returned 11.98%/yr vs 14.13%/yr for USMF. Their correlation of 0.87 suggests significant overlap in exposure. SMOT charges 0.49%/yr vs 0.28%/yr for USMF.

Performance

SMOT vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Morningstar SMID Moat ETF (SMOT) and WisdomTree US Multifactor Fund (USMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMOT achieves a 7.04% return, which is significantly higher than USMF's 4.36% return.

SMOT

• 1D: -0.21%
• 1M: 4.42%
• YTD: 7.04%
• 6M: 7.50%
• 1Y: 16.94%
• 3Y*: 11.98%
• 5Y*: —
• 10Y*: —

USMF

• 1D: -0.56%
• 1M: 3.76%
• YTD: 4.36%
• 6M: 4.80%
• 1Y: 6.28%
• 3Y*: 14.13%
• 5Y*: 7.67%
• 10Y*: —

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

SMOT vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SMOT VanEck Morningstar SMID Moat ETF	7.04%	6.46%	10.71%	17.31%	5.41%
USMF WisdomTree US Multifactor Fund	4.36%	4.60%	19.65%	13.47%	6.17%

Correlation

The correlation between SMOT and USMF is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Oct 7, 2022	0.87

The correlation between SMOT and USMF has been stable across timeframes, ranging from 0.82 to 0.87 - a consistent structural relationship.

SMOT vs. USMF - Sectors Allocation Comparison

Sectors	SMOT	USMF
Technology	22.2%	35.6%
Healthcare	18.3%	9.3%
Consumer Cyclical	13.1%	11.1%
Industrials	12.0%	7.8%
Basic Materials	8.1%	0.9%
Consumer Defensive	7.8%	5.2%
Financial Services	6.0%	11.8%
Energy	4.7%	4.1%
Utilities	2.7%	2.0%
Real Estate	2.6%	2.0%
Communication Services	2.4%	10.3%

Return for Risk

SMOT vs. USMF — Risk / Return Rank

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

SMOT

SMOT Risk / Return Rank: 35
SMOT Sharpe Ratio Rank: 33
SMOT Sortino Ratio Rank: 35
SMOT Omega Ratio Rank: 31
SMOT Calmar Ratio Rank: 39
SMOT Martin Ratio Rank: 38

USMF

USMF Risk / Return Rank: 19
USMF Sharpe Ratio Rank: 18
USMF Sortino Ratio Rank: 17
USMF Omega Ratio Rank: 17
USMF Calmar Ratio Rank: 22
USMF Martin Ratio Rank: 23

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.

SMOT vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Morningstar SMID Moat ETF (SMOT) and WisdomTree US Multifactor Fund (USMF). 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.

	SMOT	USMF	Difference
Sharpe ratio: Return per unit of total volatility	1.21	0.58	+0.62
Sortino ratio: Return per unit of downside risk	1.86	0.89	+0.97
Omega ratio: Gain probability vs. loss probability	1.21	1.10	+0.11
Calmar ratio: Return relative to maximum drawdown	1.91	0.98	+0.94
Martin ratio: Return relative to average drawdown	6.12	2.93	+3.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMOT vs. USMF - Sharpe Ratio Comparison

The current SMOT Sharpe Ratio is 1.21, which is higher than the USMF Sharpe Ratio of 0.58. The chart below compares the historical Sharpe Ratios of SMOT and USMF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SMOT	USMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.21	0.58	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.54	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.63	+0.08

Drawdowns

SMOT vs. USMF - Drawdown Comparison

The maximum SMOT drawdown since its inception was -23.36%, smaller than the maximum USMF drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for SMOT and USMF.

Drawdown Indicators

	SMOT	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-23.36%	-36.24%	+12.88%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-6.47%	-2.44%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-15.39%	-7.97%
Max Drawdown (5Y) Largest decline over 5 years	—	-18.10%	—
Current Drawdown Current decline from peak	-0.21%	-0.56%	+0.35%
Average Drawdown Average peak-to-trough decline	-4.81%	-4.16%	-0.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	2.15%	+0.63%

Volatility

SMOT vs. USMF - Volatility Comparison

VanEck Morningstar SMID Moat ETF (SMOT) has a higher volatility of 3.03% compared to WisdomTree US Multifactor Fund (USMF) at 2.30%. This indicates that SMOT's price experiences larger fluctuations and is considered to be riskier than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMOT	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.03%	2.30%	+0.73%
Volatility (6M) Calculated over the trailing 6-month period	9.47%	7.43%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.14%	10.79%	+3.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.42%	14.27%	+4.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.42%	16.97%	+1.45%

SMOT vs. USMF - Expense Ratio Comparison

SMOT has a 0.49% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

SMOT vs. USMF - Dividend Comparison

SMOT's dividend yield for the trailing twelve months is around 1.28%, less than USMF's 1.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMOT VanEck Morningstar SMID Moat ETF	1.28%	1.37%	1.18%	0.65%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%
USMF WisdomTree US Multifactor Fund	1.32%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%

Frequently Asked Questions

Can I hold both SMOT and USMF in my portfolio?

SMOT and USMF have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMOT or USMF?

SMOT has higher volatility (3.03%) compared to USMF (2.30%). In terms of maximum drawdown, SMOT dropped -23.36% vs USMF's -36.24%.

Which ETF is better, SMOT or USMF?

On 3-year performance, USMF leads with 14.13% vs 11.98% for SMOT. On fees, USMF is cheaper at 0.28% per year. On volatility, USMF has been the lower-risk option at 2.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOT or USMF?

Over the 3-year period, USMF has performed better with a 14.13% return vs 11.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOT or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.49% for SMOT.

Which ETF pays a higher dividend yield, SMOT or USMF?

USMF has the higher dividend yield at 1.32%, compared with 1.28% for SMOT.

What is the main difference between SMOT and USMF?

SMOT tracks Morningstar US Small-Mid Cap Moat Focus, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: VanEck and WisdomTree. Their fees differ too: 0.49% for SMOT and 0.28% for USMF.

Which has better risk-adjusted returns?

SMOT currently has the higher Sharpe Ratio (1.21 vs 0.58), 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.