USMF vs. PAUG

Last updated Jun 16, 2026

USMF (WisdomTree US Multifactor Fund) and PAUG (Innovator U.S. Equity Power Buffer ETF - August) are both exchange-traded funds - USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index, while PAUG is a Defined Outcome fund tracking the Cboe S&P 500 15% Buffer Protect August Series Index. Both are passively managed. Over the past 5 years, USMF returned 8.31%/yr vs 9.23%/yr for PAUG. Their correlation of 0.80 suggests significant overlap in exposure. USMF charges 0.28%/yr vs 0.79%/yr for PAUG.

Performance

USMF vs. PAUG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree US Multifactor Fund (USMF) and Innovator U.S. Equity Power Buffer ETF - August (PAUG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USMF achieves a 6.65% return, which is significantly higher than PAUG's 5.25% return.

USMF

• 1D: 1.25%
• 1M: 5.30%
• YTD: 6.65%
• 6M: 6.40%
• 1Y: 9.68%
• 3Y*: 13.99%
• 5Y*: 8.31%
• 10Y*: —

PAUG

• 1D: 0.40%
• 1M: 1.02%
• YTD: 5.25%
• 6M: 5.77%
• 1Y: 15.45%
• 3Y*: 13.76%
• 5Y*: 9.23%
• 10Y*: —

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

USMF vs. PAUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
USMF WisdomTree US Multifactor Fund	6.65%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	5.46%
PAUG Innovator U.S. Equity Power Buffer ETF - August	5.25%	12.34%	15.37%	17.71%	-6.85%	7.58%	9.82%	3.60%

Correlation

The correlation between USMF and PAUG is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Aug 1, 2019	0.80

The correlation between USMF and PAUG shifts across timeframes, from 0.65 (1 year) to 0.80 (all time), reflecting how their relationship changes across market environments.

USMF vs. PAUG - Sectors Allocation Comparison

Sectors	USMF	PAUG
Technology	33.2%	38.4%
Financial Services	10.7%	11.0%
Consumer Cyclical	10.5%	10.0%
Communication Services	9.8%	10.8%
Healthcare	9.0%	8.4%
Industrials	8.2%	7.9%
Energy	4.8%	3.2%
Consumer Defensive	4.3%	4.6%
Real Estate	2.0%	1.8%
Utilities	1.9%	2.1%
Basic Materials	0.9%	1.7%

Return for Risk

USMF vs. PAUG — Risk / Return Rank

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

USMF

USMF Risk / Return Rank: 28
USMF Sharpe Ratio Rank: 26
USMF Sortino Ratio Rank: 25
USMF Omega Ratio Rank: 24
USMF Calmar Ratio Rank: 32
USMF Martin Ratio Rank: 32

PAUG

PAUG Risk / Return Rank: 90
PAUG Sharpe Ratio Rank: 90
PAUG Sortino Ratio Rank: 93
PAUG Omega Ratio Rank: 93
PAUG Calmar Ratio Rank: 80
PAUG Martin Ratio Rank: 92

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.

USMF vs. PAUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree US Multifactor Fund (USMF) and Innovator U.S. Equity Power Buffer ETF - August (PAUG). 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.

	USMF	PAUG	Difference
Sharpe ratio: Return per unit of total volatility	0.86	2.80	-1.94
Sortino ratio: Return per unit of downside risk	1.29	4.19	-2.90
Omega ratio: Gain probability vs. loss probability	1.15	1.60	-0.45
Calmar ratio: Return relative to maximum drawdown	1.50	3.92	-2.42
Martin ratio: Return relative to average drawdown	4.47	21.35	-16.88

USMF vs. PAUG - Sharpe Ratio Comparison

The current USMF Sharpe Ratio is 0.86, which is lower than the PAUG Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of USMF and PAUG, 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

USMF vs. PAUG - Drawdown Comparison

The maximum USMF drawdown since its inception was -36.24%, which is greater than PAUG's maximum drawdown of -17.88%. Use the drawdown chart below to compare losses from any high point for USMF and PAUG.

Drawdown Indicators

	USMF	PAUG	Difference
Max Drawdown Largest peak-to-trough decline	-36.24%	-17.88%	-18.36%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-3.96%	-2.51%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-10.45%	-4.94%
Max Drawdown (5Y) Largest decline over 5 years	-18.10%	-11.76%	-6.34%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.15%	-1.81%	-2.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.17%	0.72%	+1.45%

Volatility

USMF vs. PAUG - Volatility Comparison

WisdomTree US Multifactor Fund (USMF) has a higher volatility of 4.10% compared to Innovator U.S. Equity Power Buffer ETF - August (PAUG) at 1.01%. This indicates that USMF's price experiences larger fluctuations and is considered to be riskier than PAUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMF	PAUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	1.01%	+3.09%
Volatility (6M) Calculated over the trailing 6-month period	8.13%	4.26%	+3.87%
Volatility (1Y) Calculated over the trailing 1-year period	11.31%	5.55%	+5.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	8.72%	+5.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	10.58%	+6.39%

USMF vs. PAUG - Expense Ratio Comparison

USMF has a 0.28% expense ratio, which is lower than PAUG's 0.79% expense ratio.

Dividends

USMF vs. PAUG - Dividend Comparison

USMF's dividend yield for the trailing twelve months is around 1.29%, while PAUG has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAUG Innovator U.S. Equity Power Buffer ETF - August	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.33%	0.00%	0.00%
USMF WisdomTree US Multifactor Fund	1.29%	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 USMF and PAUG in my portfolio?

USMF and PAUG have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMF or PAUG?

USMF has higher volatility (4.10%) compared to PAUG (1.01%). In terms of maximum drawdown, USMF dropped -36.24% vs PAUG's -17.88%.

Which ETF is better, USMF or PAUG?

On 5-year performance, PAUG leads with 9.23% vs 8.31% for USMF. On fees, USMF is cheaper at 0.28% per year. On volatility, PAUG has been the lower-risk option at 1.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMF or PAUG?

Over the 5-year period, PAUG has performed better with a 9.23% return vs 8.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMF or PAUG?

USMF is cheaper with a 0.28% expense ratio, compared with 0.79% for PAUG.

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

USMF has the higher dividend yield at 1.29%, compared with 0.00% for PAUG.

What is the main difference between USMF and PAUG?

USMF is categorized as Mid Cap Blend Equities, while PAUG is Defined Outcome. USMF tracks WisdomTree US Multifactor Index, while PAUG tracks Cboe S&P 500 15% Buffer Protect August Series Index. They also come from different issuers: WisdomTree and Innovator. Their fees differ too: 0.28% for USMF and 0.79% for PAUG.

Which has better risk-adjusted returns?

PAUG currently has the higher Sharpe Ratio (2.80 vs 0.86), 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.