USMF vs. VUG

Last updated Jun 16, 2026

USMF (WisdomTree US Multifactor Fund) and VUG (Vanguard Growth ETF) are both exchange-traded funds - USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 5 years, USMF returned 8.31%/yr vs 14.43%/yr for VUG. A 0.73 correlation means they provide meaningful diversification when combined. USMF charges 0.28%/yr vs 0.03%/yr for VUG.

Performance

USMF vs. VUG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree US Multifactor Fund (USMF) and Vanguard Growth ETF (VUG). 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 VUG's 7.94% return.

USMF

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

VUG

• 1D: 2.81%
• 1M: 0.27%
• YTD: 7.94%
• 6M: 9.17%
• 1Y: 26.29%
• 3Y*: 24.04%
• 5Y*: 14.43%
• 10Y*: 18.30%

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

USMF vs. VUG - 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%
VUG Vanguard Growth ETF	7.94%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	9.38%

Correlation

The correlation between USMF and VUG is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017	0.73

Over the past year, the correlation between USMF and VUG has dropped to 0.52 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.

USMF vs. VUG - Sectors Allocation Comparison

Sectors	USMF	VUG
Technology	33.2%	53.5%
Financial Services	10.7%	4.3%
Consumer Cyclical	10.5%	12.2%
Communication Services	9.8%	17.3%
Healthcare	9.0%	4.6%
Industrials	8.2%	3.6%
Energy	4.8%	0.4%
Consumer Defensive	4.3%	1.5%
Real Estate	2.0%	1.0%
Utilities	1.9%	0.9%
Basic Materials	0.9%	0.6%

Return for Risk

USMF vs. VUG — 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

VUG

VUG Risk / Return Rank: 44
VUG Sharpe Ratio Rank: 51
VUG Sortino Ratio Rank: 48
VUG Omega Ratio Rank: 49
VUG Calmar Ratio Rank: 35
VUG Martin Ratio Rank: 38

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. VUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree US Multifactor Fund (USMF) and Vanguard Growth ETF (VUG). 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	VUG	Difference
Sharpe ratio: Return per unit of total volatility	0.86	1.59	-0.73
Sortino ratio: Return per unit of downside risk	1.29	2.16	-0.86
Omega ratio: Gain probability vs. loss probability	1.15	1.28	-0.13
Calmar ratio: Return relative to maximum drawdown	1.50	1.60	-0.09
Martin ratio: Return relative to average drawdown	4.47	5.50	-1.03

USMF vs. VUG - Sharpe Ratio Comparison

The current USMF Sharpe Ratio is 0.86, which is lower than the VUG Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of USMF and VUG, 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. VUG - Drawdown Comparison

The maximum USMF drawdown since its inception was -36.24%, smaller than the maximum VUG drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for USMF and VUG.

Drawdown Indicators

	USMF	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-36.24%	-50.68%	+14.44%
Max Drawdown (1Y) Largest decline over 1 year	-6.47%	-16.53%	+10.06%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-22.85%	+7.46%
Max Drawdown (5Y) Largest decline over 5 years	-18.10%	-35.61%	+17.51%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.61%	—
Current Drawdown Current decline from peak	0.00%	-2.90%	+2.90%
Average Drawdown Average peak-to-trough decline	-4.15%	-7.09%	+2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.17%	4.79%	-2.62%

Volatility

USMF vs. VUG - Volatility Comparison

The current volatility for WisdomTree US Multifactor Fund (USMF) is 4.10%, while Vanguard Growth ETF (VUG) has a volatility of 6.32%. This indicates that USMF experiences smaller price fluctuations and is considered to be less risky than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMF	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	6.32%	-2.22%
Volatility (6M) Calculated over the trailing 6-month period	8.13%	13.28%	-5.15%
Volatility (1Y) Calculated over the trailing 1-year period	11.31%	16.65%	-5.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	22.34%	-8.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	21.51%	-4.54%

USMF vs. VUG - Expense Ratio Comparison

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

Dividends

USMF vs. VUG - Dividend Comparison

USMF's dividend yield for the trailing twelve months is around 1.29%, more than VUG's 0.38% 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%
VUG Vanguard Growth ETF	0.38%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both USMF and VUG in my portfolio?

USMF and VUG have a correlation of 0.52, 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 VUG?

VUG has higher volatility (6.32%) compared to USMF (4.10%). In terms of maximum drawdown, USMF dropped -36.24% vs VUG's -50.68%.

Which ETF is better, USMF or VUG?

On 5-year performance, VUG leads with 14.43% vs 8.31% for USMF. On fees, VUG 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 VUG?

Over the 5-year period, VUG has performed better with a 14.43% 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 VUG?

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

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

USMF has the higher dividend yield at 1.29%, compared with 0.38% for VUG.

What is the main difference between USMF and VUG?

USMF is categorized as Mid Cap Blend Equities, while VUG is Large Cap Growth Equities. USMF tracks WisdomTree US Multifactor Index, while VUG tracks CRSP US Large Cap Growth Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.28% for USMF and 0.03% for VUG.

Which has better risk-adjusted returns?

VUG currently has the higher Sharpe Ratio (1.59 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.