USMV vs. VFMV

Last updated Jun 24, 2026

USMV (iShares MSCI USA Min Vol Factor ETF) and VFMV (Vanguard U.S. Minimum Volatility ETF) are both exchange-traded funds - USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index, while VFMV is a Mid Cap Blend Equities fund actively managed by Vanguard. USMV is passively managed, while VFMV is actively managed. Over the past 5 years, USMV returned 7.02%/yr vs 9.37%/yr for VFMV. Their correlation of 0.90 suggests significant overlap in exposure. USMV charges 0.15%/yr vs 0.13%/yr for VFMV.

Performance

USMV vs. VFMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard U.S. Minimum Volatility ETF (VFMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USMV achieves a 1.14% return, which is significantly lower than VFMV's 7.05% return.

USMV

• 1D: 0.29%
• 1M: -2.10%
• YTD: 1.14%
• 6M: 0.51%
• 1Y: 3.59%
• 3Y*: 10.93%
• 5Y*: 7.02%
• 10Y*: 9.79%

VFMV

• 1D: -0.11%
• 1M: -2.12%
• YTD: 7.05%
• 6M: 6.39%
• 1Y: 11.08%
• 3Y*: 14.36%
• 5Y*: 9.37%
• 10Y*: —

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

USMV vs. VFMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
USMV iShares MSCI USA Min Vol Factor ETF	1.14%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	2.54%
VFMV Vanguard U.S. Minimum Volatility ETF	7.05%	10.52%	16.91%	8.86%	-5.73%	20.75%	-0.19%	27.26%	-0.34%

Correlation

The correlation between USMV and VFMV is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.90

The correlation between USMV and VFMV shifts across timeframes, from 0.80 (1 year) to 0.91 (5 years), reflecting how their relationship changes across market environments.

USMV vs. VFMV - Sectors Allocation Comparison

Sectors	USMV	VFMV
Technology	33.9%	25.1%
Healthcare	12.6%	10.1%
Financial Services	11.7%	10.6%
Consumer Defensive	9.4%	9.5%
Utilities	6.9%	6.7%
Communication Services	6.2%	10.7%
Industrials	6.1%	10.1%
Consumer Cyclical	5.7%	6.9%
Energy	2.7%	3.9%
Real Estate	2.5%	6.4%
Basic Materials	2.4%	-

Return for Risk

USMV vs. VFMV — Risk / Return Rank

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

USMV

USMV Risk / Return Rank: 15
USMV Sharpe Ratio Rank: 15
USMV Sortino Ratio Rank: 13
USMV Omega Ratio Rank: 13
USMV Calmar Ratio Rank: 15
USMV Martin Ratio Rank: 17

VFMV

VFMV Risk / Return Rank: 38
VFMV Sharpe Ratio Rank: 36
VFMV Sortino Ratio Rank: 36
VFMV Omega Ratio Rank: 34
VFMV Calmar Ratio Rank: 38
VFMV Martin Ratio Rank: 44

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.

USMV vs. VFMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Min Vol Factor ETF (USMV) and Vanguard U.S. Minimum Volatility ETF (VFMV). 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.

	USMV	VFMV	Difference
Sharpe ratio: Return per unit of total volatility	0.42	1.26	-0.84
Sortino ratio: Return per unit of downside risk	0.65	1.83	-1.18
Omega ratio: Gain probability vs. loss probability	1.08	1.22	-0.15
Calmar ratio: Return relative to maximum drawdown	0.56	1.85	-1.30
Martin ratio: Return relative to average drawdown	1.82	7.06	-5.24

USMV vs. VFMV - Sharpe Ratio Comparison

The current USMV Sharpe Ratio is 0.42, which is lower than the VFMV Sharpe Ratio of 1.26. The chart below compares the historical Sharpe Ratios of USMV and VFMV, 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

USMV vs. VFMV - Drawdown Comparison

The maximum USMV drawdown since its inception was -33.10%, roughly equal to the maximum VFMV drawdown of -33.64%. Use the drawdown chart below to compare losses from any high point for USMV and VFMV.

Drawdown Indicators

	USMV	VFMV	Difference
Max Drawdown Largest peak-to-trough decline	-33.10%	-33.64%	+0.54%
Max Drawdown (1Y) Largest decline over 1 year	-6.46%	-6.00%	-0.46%
Max Drawdown (3Y) Largest decline over 3 years	-9.36%	-10.35%	+0.99%
Max Drawdown (5Y) Largest decline over 5 years	-17.93%	-15.41%	-2.52%
Max Drawdown (10Y) Largest decline over 10 years	-33.10%	—	—
Current Drawdown Current decline from peak	-2.63%	-2.37%	-0.26%
Average Drawdown Average peak-to-trough decline	-2.87%	-3.62%	+0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.57%	+0.41%

Volatility

USMV vs. VFMV - Volatility Comparison

iShares MSCI USA Min Vol Factor ETF (USMV) has a higher volatility of 2.63% compared to Vanguard U.S. Minimum Volatility ETF (VFMV) at 2.50%. This indicates that USMV's price experiences larger fluctuations and is considered to be riskier than VFMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USMV	VFMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.63%	2.50%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	6.14%	6.44%	-0.30%
Volatility (1Y) Calculated over the trailing 1-year period	8.60%	8.89%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.35%	11.75%	+0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.51%	14.22%	+0.29%

USMV vs. VFMV - Expense Ratio Comparison

USMV has a 0.15% expense ratio, which is higher than VFMV's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

USMV vs. VFMV - Dividend Comparison

USMV's dividend yield for the trailing twelve months is around 1.53%, more than VFMV's 1.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USMV iShares MSCI USA Min Vol Factor ETF	1.53%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%
VFMV Vanguard U.S. Minimum Volatility ETF	1.51%	2.12%	1.46%	2.20%	2.08%	1.31%	2.14%	2.43%	2.29%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USMV and VFMV in my portfolio?

USMV and VFMV have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMV or VFMV?

USMV has higher volatility (2.63%) compared to VFMV (2.50%). In terms of maximum drawdown, USMV dropped -33.10% vs VFMV's -33.64%.

Which ETF is better, USMV or VFMV?

On 5-year performance, VFMV leads with 9.37% vs 7.02% for USMV. On fees, VFMV is cheaper at 0.13% per year. On volatility, VFMV has been the lower-risk option at 2.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMV or VFMV?

Over the 5-year period, VFMV has performed better with a 9.37% return vs 7.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMV or VFMV?

VFMV is cheaper with a 0.13% expense ratio, compared with 0.15% for USMV.

Which ETF pays a higher dividend yield, USMV or VFMV?

USMV has the higher dividend yield at 1.53%, compared with 1.51% for VFMV.

What is the main difference between USMV and VFMV?

USMV is categorized as Large Cap Blend Equities, while VFMV is Mid Cap Blend Equities. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for USMV and 0.13% for VFMV.

Which has better risk-adjusted returns?

VFMV currently has the higher Sharpe Ratio (1.26 vs 0.42), 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.