USMF vs. VFQY

Last updated Jun 5, 2026

USMF (WisdomTree US Multifactor Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both Mid Cap Blend Equities funds. USMF is passively managed, while VFQY is actively managed. Over the past 5 years, USMF returned 7.68%/yr vs 8.54%/yr for VFQY. Their correlation of 0.89 suggests significant overlap in exposure. USMF charges 0.28%/yr vs 0.13%/yr for VFQY.

Performance

USMF vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree US Multifactor Fund (USMF) and Vanguard U.S. Quality Factor ETF (VFQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USMF achieves a 4.43% return, which is significantly lower than VFQY's 8.53% return.

USMF

• 1D: 0.08%
• 1M: 3.17%
• YTD: 4.43%
• 6M: 4.58%
• 1Y: 6.68%
• 3Y*: 14.35%
• 5Y*: 7.68%
• 10Y*: —

VFQY

• 1D: 0.80%
• 1M: 3.49%
• YTD: 8.53%
• 6M: 8.67%
• 1Y: 20.07%
• 3Y*: 16.73%
• 5Y*: 8.54%
• 10Y*: —

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

USMF vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
USMF WisdomTree US Multifactor Fund	4.43%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-6.17%
VFQY Vanguard U.S. Quality Factor ETF	8.53%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-7.85%

Correlation

The correlation between USMF and VFQY is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 16, 2018	0.89

The correlation between USMF and VFQY has been stable across timeframes, ranging from 0.83 to 0.91 - a consistent structural relationship.

USMF vs. VFQY - Sectors Allocation Comparison

Sectors	USMF	VFQY
Technology	35.6%	25.8%
Financial Services	11.8%	18.9%
Consumer Cyclical	11.1%	13.3%
Communication Services	10.3%	2.8%
Healthcare	9.3%	8.9%
Industrials	7.8%	16.8%
Consumer Defensive	5.2%	9.2%
Energy	4.1%	2.2%
Real Estate	2.0%	-
Utilities	2.0%	-
Basic Materials	0.9%	2.2%

Return for Risk

USMF vs. VFQY — Risk / Return Rank

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

USMF

USMF Risk / Return Rank: 21
USMF Sharpe Ratio Rank: 20
USMF Sortino Ratio Rank: 19
USMF Omega Ratio Rank: 18
USMF Calmar Ratio Rank: 23
USMF Martin Ratio Rank: 24

VFQY

VFQY Risk / Return Rank: 45
VFQY Sharpe Ratio Rank: 44
VFQY Sortino Ratio Rank: 44
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 46
VFQY Martin Ratio Rank: 50

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. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree US Multifactor Fund (USMF) and Vanguard U.S. Quality Factor ETF (VFQY). 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.

	USMF	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	0.62	1.50	-0.87
Sortino ratio: Return per unit of downside risk	0.94	2.18	-1.24
Omega ratio: Gain probability vs. loss probability	1.11	1.26	-0.15
Calmar ratio: Return relative to maximum drawdown	1.04	2.21	-1.17
Martin ratio: Return relative to average drawdown	3.11	8.19	-5.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USMF vs. VFQY - Sharpe Ratio Comparison

The current USMF Sharpe Ratio is 0.62, which is lower than the VFQY Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of USMF and VFQY, 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

	USMF	VFQY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.62	1.50	-0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.47	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.54	+0.09

Drawdowns

USMF vs. VFQY - Drawdown Comparison

The maximum USMF drawdown since its inception was -36.24%, roughly equal to the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for USMF and VFQY.

Drawdown Indicators

	USMF	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-36.24%	-37.41%	+1.17%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-9.12%	+2.65%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-20.67%	+5.28%
Max Drawdown (5Y) Largest decline over 5 years	-18.10%	-25.93%	+7.83%
Current Drawdown Current decline from peak	-0.49%	0.00%	-0.49%
Average Drawdown Average peak-to-trough decline	-4.16%	-6.69%	+2.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	2.46%	-0.31%

Volatility

USMF vs. VFQY - Volatility Comparison

The current volatility for WisdomTree US Multifactor Fund (USMF) is 2.25%, while Vanguard U.S. Quality Factor ETF (VFQY) has a volatility of 2.60%. This indicates that USMF experiences smaller price fluctuations and is considered to be less risky than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMF	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.25%	2.60%	-0.35%
Volatility (6M) Calculated over the trailing 6-month period	7.42%	9.51%	-2.09%
Volatility (1Y) Calculated over the trailing 1-year period	10.79%	13.49%	-2.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.26%	18.33%	-4.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.96%	20.87%	-3.91%

USMF vs. VFQY - Expense Ratio Comparison

USMF has a 0.28% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

USMF vs. VFQY - Dividend Comparison

USMF's dividend yield for the trailing twelve months is around 1.31%, more than VFQY's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMF WisdomTree US Multifactor Fund	1.31%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%
VFQY Vanguard U.S. Quality Factor ETF	1.09%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%

Frequently Asked Questions

Can I hold both USMF and VFQY in my portfolio?

USMF and VFQY have a correlation of 0.83, 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 VFQY?

VFQY has higher volatility (2.60%) compared to USMF (2.25%). In terms of maximum drawdown, USMF dropped -36.24% vs VFQY's -37.41%.

Which ETF is better, USMF or VFQY?

On 5-year performance, VFQY leads with 8.54% vs 7.68% for USMF. On fees, VFQY is cheaper at 0.13% per year. On volatility, USMF has been the lower-risk option at 2.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMF or VFQY?

Over the 5-year period, VFQY has performed better with a 8.54% return vs 7.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMF or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.28% for USMF.

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

USMF has the higher dividend yield at 1.31%, compared with 1.09% for VFQY.

What is the main difference between USMF and VFQY?

They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.28% for USMF and 0.13% for VFQY.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.50 vs 0.62), 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.