USMV vs. VFMV
Compare and contrast key facts about iShares Edge MSCI Min Vol USA ETF (USMV) and Vanguard U.S. Minimum Volatility ETF (VFMV).
USMV and VFMV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USMV is a passively managed fund by iShares that tracks the performance of the MSCI USA Minimum Volatility Index. It was launched on Oct 18, 2011. VFMV is managed by Vanguard. It was launched on Feb 13, 2018.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: USMV or VFMV.
Key characteristics
| USMV | VFMV | |
|---|---|---|
| YTD Return | 3.41% | 3.95% |
| 1Y Return | 11.52% | 13.30% |
| 3Y Return (Ann) | 5.48% | 6.39% |
| 5Y Return (Ann) | 8.05% | 7.31% |
| Sharpe Ratio | 1.24 | 1.29 |
| Daily Std Dev | 8.53% | 9.00% |
| Max Drawdown | -33.10% | -33.64% |
| Current Drawdown | -3.88% | -3.12% |
Correlation
The correlation between USMV and VFMV is 0.91, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
USMV vs. VFMV - Performance Comparison
In the year-to-date period, USMV achieves a 3.41% return, which is significantly lower than VFMV's 3.95% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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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%.
Risk-Adjusted Performance
USMV vs. VFMV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI Min Vol USA 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.
Dividends
USMV vs. VFMV - Dividend Comparison
USMV's dividend yield for the trailing twelve months is around 1.81%, which matches VFMV's 1.80% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares Edge MSCI Min Vol USA ETF | 1.81% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% | 1.88% | 2.18% |
VFMV Vanguard U.S. Minimum Volatility ETF | 1.80% | 2.20% | 2.08% | 1.31% | 2.14% | 2.43% | 2.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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. For additional features, visit the drawdowns tool.
Volatility
USMV vs. VFMV - Volatility Comparison
iShares Edge MSCI Min Vol USA ETF (USMV) and Vanguard U.S. Minimum Volatility ETF (VFMV) have volatilities of 2.37% and 2.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.