USMF vs. VEA

Last updated Jun 16, 2026

USMF (WisdomTree US Multifactor Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 5 years, USMF returned 8.31%/yr vs 9.87%/yr for VEA. A 0.74 correlation means they provide meaningful diversification when combined. USMF charges 0.28%/yr vs 0.03%/yr for VEA.

Performance

USMF vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree US Multifactor Fund (USMF) and Vanguard FTSE Developed Markets ETF (VEA). 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 lower than VEA's 16.08% return.

USMF

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

VEA

• 1D: 1.17%
• 1M: 4.79%
• YTD: 16.08%
• 6M: 17.35%
• 1Y: 32.96%
• 3Y*: 19.14%
• 5Y*: 9.87%
• 10Y*: 10.67%

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

USMF vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMF WisdomTree US Multifactor Fund	6.65%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-4.72%	11.27%
VEA Vanguard FTSE Developed Markets ETF	16.08%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	7.78%

Correlation

The correlation between USMF and VEA is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017	0.74

The correlation between USMF and VEA shifts across timeframes, from 0.61 (1 year) to 0.74 (all time), reflecting how their relationship changes across market environments.

USMF vs. VEA - Sectors Allocation Comparison

Sectors	USMF	VEA
Technology	33.2%	13.8%
Financial Services	10.7%	23.3%
Consumer Cyclical	10.5%	7.5%
Communication Services	9.8%	3.4%
Healthcare	9.0%	8.2%
Industrials	8.2%	19.2%
Energy	4.8%	5.4%
Consumer Defensive	4.3%	5.6%
Real Estate	2.0%	2.7%
Utilities	1.9%	3.3%
Basic Materials	0.9%	7.5%

Return for Risk

USMF vs. VEA — 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

VEA

VEA Risk / Return Rank: 67
VEA Sharpe Ratio Rank: 69
VEA Sortino Ratio Rank: 67
VEA Omega Ratio Rank: 69
VEA Calmar Ratio Rank: 63
VEA Martin Ratio Rank: 66

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree US Multifactor Fund (USMF) and Vanguard FTSE Developed Markets ETF (VEA). 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	VEA	Difference
Sharpe ratio: Return per unit of total volatility	0.86	2.00	-1.14
Sortino ratio: Return per unit of downside risk	1.29	2.74	-1.44
Omega ratio: Gain probability vs. loss probability	1.15	1.36	-0.21
Calmar ratio: Return relative to maximum drawdown	1.50	2.85	-1.34
Martin ratio: Return relative to average drawdown	4.47	10.96	-6.49

USMF vs. VEA - Sharpe Ratio Comparison

The current USMF Sharpe Ratio is 0.86, which is lower than the VEA Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of USMF and VEA, 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. VEA - Drawdown Comparison

The maximum USMF drawdown since its inception was -36.24%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for USMF and VEA.

Drawdown Indicators

	USMF	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-36.24%	-60.68%	+24.44%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-11.63%	+5.16%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-13.45%	-1.94%
Max Drawdown (5Y) Largest decline over 5 years	-18.10%	-29.71%	+11.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.73%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.15%	-13.27%	+9.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.17%	3.01%	-0.84%

Volatility

USMF vs. VEA - Volatility Comparison

The current volatility for WisdomTree US Multifactor Fund (USMF) is 4.10%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.92%. This indicates that USMF experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMF	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	6.92%	-2.82%
Volatility (6M) Calculated over the trailing 6-month period	8.13%	14.42%	-6.29%
Volatility (1Y) Calculated over the trailing 1-year period	11.31%	16.58%	-5.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	16.73%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	17.41%	-0.44%

USMF vs. VEA - Expense Ratio Comparison

USMF has a 0.28% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

USMF vs. VEA - Dividend Comparison

USMF's dividend yield for the trailing twelve months is around 1.29%, less than VEA's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.59%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both USMF and VEA in my portfolio?

USMF and VEA have a correlation of 0.61, 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 VEA?

VEA has higher volatility (6.92%) compared to USMF (4.10%). In terms of maximum drawdown, USMF dropped -36.24% vs VEA's -60.68%.

Which ETF is better, USMF or VEA?

On 5-year performance, VEA leads with 9.87% vs 8.31% for USMF. On fees, VEA is cheaper at 0.03% per year. On volatility, USMF has been the lower-risk option at 4.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMF or VEA?

Over the 5-year period, VEA has performed better with a 9.87% 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 VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.28% for USMF.

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

VEA has the higher dividend yield at 2.59%, compared with 1.29% for USMF.

What is the main difference between USMF and VEA?

USMF is categorized as Mid Cap Blend Equities, while VEA is Foreign Large Cap Equities. USMF tracks WisdomTree US Multifactor Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.28% for USMF and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.00 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.