PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
USMV vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

USMV vs. VWO

Last updated Jul 22, 2026
Documentation

USMV (iShares MSCI USA Min Vol Factor ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, USMV returned 9.38%/yr vs 7.82%/yr for VWO. A 0.54 correlation means they provide meaningful diversification when combined. USMV charges 0.15%/yr vs 0.08%/yr for VWO.

Performance

USMV vs. VWO - 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 FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, USMV achieves a 3.28% return, which is significantly lower than VWO's 9.62% return. Over the past 10 years, USMV has outperformed VWO with an annualized return of 9.38%, while VWO has yielded a comparatively lower 7.82% annualized return.

USMV

1D
0.05%
1M
2.45%
6M
3.89%
YTD
3.28%
1Y
5.44%
3Y*
10.22%
5Y*
6.78%
10Y*
9.38%
ALL TIME*
11.57%

VWO

1D
1.61%
1M
-3.14%
6M
6.10%
YTD
9.62%
1Y
19.01%
3Y*
15.95%
5Y*
5.44%
10Y*
7.82%
ALL TIME*
6.83%
*Multi-year figures are annualized to reflect compound growth (CAGR)

USMV vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
USMV
iShares MSCI USA Min Vol Factor ETF		3.28%7.65%15.74%10.33%-9.43%20.85%5.64%27.69%1.33%18.91%
VWO
Vanguard FTSE Emerging Markets ETF		9.62%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between USMV and VWO is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.27

Correlation (3Y)
Calculated over the trailing 3-year period

0.36

Correlation (5Y)
Calculated over the trailing 5-year period

0.42

Correlation (10Y)
Calculated over the trailing 10-year period

0.49

Correlation (All Time)
Calculated using the full available price history since Oct 20, 2011

0.54

Over the past year, the correlation between USMV and VWO has dropped to 0.27 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

USMV vs. VWO - Sectors Allocation Comparison

Sectors
USMV
VWO

Technology

33.0%
31.4%

Healthcare

13.4%
3.4%

Financial Services

11.8%
16.8%

Consumer Defensive

9.3%
3.2%

Utilities

7.2%
2.4%

Industrials

6.4%
7.0%

Consumer Cyclical

5.8%
8.6%

Communication Services

5.7%
5.8%

Energy

2.6%
3.6%

Real Estate

2.6%
1.8%

Basic Materials

2.2%
7.0%

Technology

USMV
33.0%
VWO
31.4%

Healthcare

USMV
13.4%
VWO
3.4%

Financial Services

USMV
11.8%
VWO
16.8%

Consumer Defensive

USMV
9.3%
VWO
3.2%

Utilities

USMV
7.2%
VWO
2.4%

Industrials

USMV
6.4%
VWO
7.0%

Consumer Cyclical

USMV
5.8%
VWO
8.6%

Communication Services

USMV
5.7%
VWO
5.8%

Energy

USMV
2.6%
VWO
3.6%

Real Estate

USMV
2.6%
VWO
1.8%

Basic Materials

USMV
2.2%
VWO
7.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI USA Min Vol Factor ETF

Vanguard FTSE Emerging Markets ETF

Often compared with USMV:
USMV vs. SPLVUSMV vs. SPYUSMV vs. VOOUSMV vs. QUALUSMV vs. VFMVUSMV vs. ACWVUSMV vs. VTI
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

USMV vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
USMV
USMV Risk / Return Rank: 2424
Overall Rank
USMV Sharpe Ratio Rank: 2525
Sharpe Ratio Rank
USMV Sortino Ratio Rank: 2323
Sortino Ratio Rank
USMV Omega Ratio Rank: 2222
Omega Ratio Rank
USMV Calmar Ratio Rank: 2525
Calmar Ratio Rank
USMV Martin Ratio Rank: 2828
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 4343
Overall Rank
VWO Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4040
Sortino Ratio Rank
VWO Omega Ratio Rank: 4141
Omega Ratio Rank
VWO Calmar Ratio Rank: 4545
Calmar Ratio Rank
VWO Martin Ratio Rank: 4747
Martin Ratio Rank
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. VWO - 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 FTSE Emerging Markets ETF (VWO). 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.

USMVVWODifference
Sharpe ratioReturn per unit of total volatility
0.64
1.10

-0.46

Sortino ratioReturn per unit of downside risk
0.96
1.59

-0.63

Omega ratioGain probability vs. loss probability

1.11

1.21

-0.09

Calmar ratioReturn relative to maximum drawdown

0.85

1.71

-0.86

Martin ratioReturn relative to average drawdown

2.74

5.74

-2.99

USMV vs. VWO - Sharpe Ratio Comparison

The current USMV Sharpe Ratio is 0.64, which is lower than the VWO Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of USMV and VWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

USMV vs. VWO - Drawdown Comparison

The maximum USMV drawdown since its inception was -33.10%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for USMV and VWO.

Loading charts...

Drawdown Indicators

USMVVWODifference

Max Drawdown

Largest peak-to-trough decline

-33.10%

-67.68%

+34.58%

Max Drawdown (1Y)

Largest decline over 1 year

-6.46%

-11.17%

+4.71%

Max Drawdown (3Y)

Largest decline over 3 years

-9.36%

-17.37%

+8.01%

Max Drawdown (5Y)

Largest decline over 5 years

-17.93%

-30.88%

+12.95%

Max Drawdown (10Y)

Largest decline over 10 years

-33.10%

-36.39%

+3.29%

Current Drawdown

Current decline from peak

-1.83%

-3.89%

+2.06%

Average Drawdown

Average peak-to-trough decline

-2.86%

-15.74%

+12.88%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.99%

3.32%

-1.33%

Volatility

USMV vs. VWO - Volatility Comparison

The current volatility for iShares MSCI USA Min Vol Factor ETF (USMV) is 2.60%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 5.77%. This indicates that USMV experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

USMVVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

2.60%

5.77%

-3.17%

Volatility (6M)

Calculated over the trailing 6-month period

6.42%

15.00%

-8.58%

Volatility (1Y)

Calculated over the trailing 1-year period

8.53%

17.35%

-8.82%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.37%

17.61%

-5.24%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.50%

19.15%

-4.65%

USMV vs. VWO - Expense Ratio Comparison

USMV has a 0.15% expense ratio, which is higher than VWO's 0.08% 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. VWO - Dividend Comparison

USMV's dividend yield for the trailing twelve months is around 1.50%, less than VWO's 2.35% yield.

PositionTTM20252024202320222021202020192018201720162015
USMV
iShares MSCI USA Min Vol Factor ETF		1.50%1.49%1.67%1.82%1.62%1.26%1.81%1.88%2.12%1.77%2.22%2.02%
VWO
Vanguard FTSE Emerging Markets ETF		2.35%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

Frequently Asked Questions

USMV and VWO have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (5.77%) compared to USMV (2.60%). In terms of maximum drawdown, USMV dropped -33.10% vs VWO's -67.68%.

On 10-year performance, USMV leads with 9.38% vs 7.82% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, USMV has been the lower-risk option at 2.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, USMV has performed better with a 9.38% return vs 7.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.15% for USMV.

VWO has the higher dividend yield at 2.35%, compared with 1.50% for USMV.

USMV is categorized as Large Cap Blend Equities, while VWO is Emerging Markets Equities. USMV tracks MSCI USA Minimum Volatility Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for USMV and 0.08% for VWO.

VWO currently has the higher Sharpe Ratio (1.10 vs 0.64), 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.

Portfolio Optimizer

Find the right allocation for USMV and VWO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer