VFMF vs. USMF

Last updated Jun 5, 2026

VFMF (Vanguard U.S. Multifactor ETF) and USMF (WisdomTree US Multifactor Fund) are both exchange-traded funds - VFMF is a Multi-factor fund managed by Vanguard, while USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index. Over the past 5 years, VFMF returned 13.18%/yr vs 7.67%/yr for USMF. Their correlation of 0.89 suggests significant overlap in exposure. VFMF charges 0.18%/yr vs 0.28%/yr for USMF.

Performance

VFMF vs. USMF - Performance Comparison

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

Returns By Period

In the year-to-date period, VFMF achieves a 16.18% return, which is significantly higher than USMF's 4.36% return.

VFMF

• 1D: 1.15%
• 1M: 2.93%
• YTD: 16.18%
• 6M: 17.39%
• 1Y: 35.69%
• 3Y*: 23.25%
• 5Y*: 13.18%
• 10Y*: —

USMF

• 1D: -0.56%
• 1M: 3.76%
• YTD: 4.36%
• 6M: 4.80%
• 1Y: 6.28%
• 3Y*: 14.13%
• 5Y*: 7.67%
• 10Y*: —

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

VFMF vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMF Vanguard U.S. Multifactor ETF	16.18%	17.38%	15.60%	18.52%	-5.70%	30.05%	4.99%	22.34%	-11.29%
USMF WisdomTree US Multifactor Fund	4.36%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-6.17%

Correlation

The correlation between VFMF and USMF 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	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Feb 16, 2018	0.89

The correlation between VFMF and USMF has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.

VFMF vs. USMF - Sectors Allocation Comparison

Sectors	VFMF	USMF
Financial Services	24.6%	11.8%
Healthcare	16.9%	9.3%
Consumer Cyclical	13.6%	11.1%
Technology	12.7%	35.6%
Industrials	9.0%	7.8%
Energy	7.3%	4.1%
Consumer Defensive	6.8%	5.2%
Communication Services	5.0%	10.3%
Basic Materials	3.4%	0.9%
Real Estate	0.3%	2.0%
Utilities	0.2%	2.0%

Return for Risk

VFMF vs. USMF — Risk / Return Rank

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

VFMF

VFMF Risk / Return Rank: 86
VFMF Sharpe Ratio Rank: 84
VFMF Sortino Ratio Rank: 87
VFMF Omega Ratio Rank: 81
VFMF Calmar Ratio Rank: 88
VFMF Martin Ratio Rank: 88

USMF

USMF Risk / Return Rank: 19
USMF Sharpe Ratio Rank: 18
USMF Sortino Ratio Rank: 17
USMF Omega Ratio Rank: 17
USMF Calmar Ratio Rank: 22
USMF Martin Ratio Rank: 23

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.

VFMF vs. USMF - Risk-Adjusted Trends Comparison

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

	VFMF	USMF	Difference
Sharpe ratio: Return per unit of total volatility	2.73	0.58	+2.14
Sortino ratio: Return per unit of downside risk	3.89	0.89	+3.00
Omega ratio: Gain probability vs. loss probability	1.48	1.10	+0.38
Calmar ratio: Return relative to maximum drawdown	5.07	0.98	+4.09
Martin ratio: Return relative to average drawdown	19.02	2.93	+16.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFMF vs. USMF - Sharpe Ratio Comparison

The current VFMF Sharpe Ratio is 2.73, which is higher than the USMF Sharpe Ratio of 0.58. The chart below compares the historical Sharpe Ratios of VFMF and USMF, 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

	VFMF	USMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.73	0.58	+2.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.54	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.63	-0.04

Drawdowns

VFMF vs. USMF - Drawdown Comparison

The maximum VFMF drawdown since its inception was -41.34%, which is greater than USMF's maximum drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for VFMF and USMF.

Drawdown Indicators

	VFMF	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-41.34%	-36.24%	-5.10%
Max Drawdown (1Y) Largest decline over 1 year	-7.08%	-6.47%	-0.61%
Max Drawdown (3Y) Largest decline over 3 years	-20.57%	-15.39%	-5.18%
Max Drawdown (5Y) Largest decline over 5 years	-20.57%	-18.10%	-2.47%
Current Drawdown Current decline from peak	0.00%	-0.56%	+0.56%
Average Drawdown Average peak-to-trough decline	-5.74%	-4.16%	-1.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.88%	2.15%	-0.27%

Volatility

VFMF vs. USMF - Volatility Comparison

Vanguard U.S. Multifactor ETF (VFMF) has a higher volatility of 2.93% compared to WisdomTree US Multifactor Fund (USMF) at 2.30%. This indicates that VFMF's price experiences larger fluctuations and is considered to be riskier than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMF	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.93%	2.30%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	9.13%	7.43%	+1.70%
Volatility (1Y) Calculated over the trailing 1-year period	13.16%	10.79%	+2.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.10%	14.27%	+3.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.15%	16.97%	+4.18%

VFMF vs. USMF - Expense Ratio Comparison

VFMF has a 0.18% expense ratio, which is lower than USMF's 0.28% expense ratio.

Dividends

VFMF vs. USMF - Dividend Comparison

VFMF's dividend yield for the trailing twelve months is around 1.36%, more than USMF's 1.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMF WisdomTree US Multifactor Fund	1.32%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%
VFMF Vanguard U.S. Multifactor ETF	1.36%	1.54%	1.60%	1.78%	2.21%	1.39%	1.56%	1.61%	1.22%	0.00%

Frequently Asked Questions

Can I hold both VFMF and USMF in my portfolio?

VFMF and USMF 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, VFMF or USMF?

VFMF has higher volatility (2.93%) compared to USMF (2.30%). In terms of maximum drawdown, VFMF dropped -41.34% vs USMF's -36.24%.

Which ETF is better, VFMF or USMF?

On 5-year performance, VFMF leads with 13.18% vs 7.67% for USMF. On fees, VFMF is cheaper at 0.18% per year. On volatility, USMF has been the lower-risk option at 2.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMF or USMF?

Over the 5-year period, VFMF has performed better with a 13.18% return vs 7.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMF or USMF?

VFMF is cheaper with a 0.18% expense ratio, compared with 0.28% for USMF.

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

VFMF has the higher dividend yield at 1.36%, compared with 1.32% for USMF.

What is the main difference between VFMF and USMF?

VFMF is categorized as Multi-factor, while USMF is Mid Cap Blend Equities. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.18% for VFMF and 0.28% for USMF.

Which has better risk-adjusted returns?

VFMF currently has the higher Sharpe Ratio (2.73 vs 0.58), 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.