VFMO vs. USVM

Last updated Jul 16, 2026

VFMO (Vanguard U.S. Momentum Factor ETF) and USVM (VictoryShares US Small Mid Cap Value Momentum ETF) are both Momentum funds. VFMO is actively managed, while USVM is passively managed. Over the past 5 years, VFMO returned 14.61%/yr vs 11.92%/yr for USVM. Their correlation of 0.86 suggests significant overlap in exposure. VFMO charges 0.13%/yr vs 0.29%/yr for USVM.

Performance

VFMO vs. USVM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Momentum Factor ETF (VFMO) and VictoryShares US Small Mid Cap Value Momentum ETF (USVM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFMO achieves a 22.17% return, which is significantly higher than USVM's 20.98% return.

VFMO

• 1D: -0.96%
• 1M: -3.46%
• 6M: 13.76%
• YTD: 22.17%
• 1Y: 36.21%
• 3Y*: 24.61%
• 5Y*: 14.61%
• 10Y*: —

USVM

• 1D: 0.52%
• 1M: 1.87%
• 6M: 14.83%
• YTD: 20.98%
• 1Y: 33.64%
• 3Y*: 19.45%
• 5Y*: 11.92%
• 10Y*: —

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

VFMO vs. USVM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMO Vanguard U.S. Momentum Factor ETF	22.17%	17.39%	26.14%	16.25%	-12.84%	19.16%	31.36%	28.22%	-11.41%
USVM VictoryShares US Small Mid Cap Value Momentum ETF	20.98%	10.56%	16.59%	18.90%	-13.23%	24.44%	11.56%	21.65%	-7.29%

Correlation

The correlation between VFMO and USVM is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.86

The correlation between VFMO and USVM shifts across timeframes, from 0.75 (1 year) to 0.87 (5 years), reflecting how their relationship changes across market environments.

VFMO vs. USVM - Sectors Allocation Comparison

Sectors	VFMO	USVM
Industrials	24.7%	10.6%
Healthcare	22.9%	12.8%
Technology	17.5%	8.7%
Consumer Cyclical	8.7%	12.3%
Energy	7.3%	5.1%
Financial Services	6.5%	25.1%
Basic Materials	6.4%	1.7%
Communication Services	3.4%	3.0%
Consumer Defensive	2.5%	3.7%
Utilities	0.2%	7.4%
Real Estate	0.1%	9.6%

Return for Risk

VFMO vs. USVM — Risk / Return Rank

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

VFMO

VFMO Risk / Return Rank: 65
VFMO Sharpe Ratio Rank: 59
VFMO Sortino Ratio Rank: 54
VFMO Omega Ratio Rank: 54
VFMO Calmar Ratio Rank: 79
VFMO Martin Ratio Rank: 78

USVM

USVM Risk / Return Rank: 88
USVM Sharpe Ratio Rank: 88
USVM Sortino Ratio Rank: 90
USVM Omega Ratio Rank: 85
USVM Calmar Ratio Rank: 88
USVM Martin Ratio Rank: 89

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.

VFMO vs. USVM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Momentum Factor ETF (VFMO) and VictoryShares US Small Mid Cap Value Momentum ETF (USVM). 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.

	VFMO	USVM	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.31	-0.72
Sortino ratio: Return per unit of downside risk	2.13	3.37	-1.24
Omega ratio: Gain probability vs. loss probability	1.27	1.40	-0.13
Calmar ratio: Return relative to maximum drawdown	3.31	4.04	-0.73
Martin ratio: Return relative to average drawdown	11.52	15.31	-3.79

VFMO vs. USVM - Sharpe Ratio Comparison

The current VFMO Sharpe Ratio is 1.58, which is lower than the USVM Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of VFMO and USVM, 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

VFMO vs. USVM - Drawdown Comparison

The maximum VFMO drawdown since its inception was -36.77%, smaller than the maximum USVM drawdown of -42.38%. Use the drawdown chart below to compare losses from any high point for VFMO and USVM.

Drawdown Indicators

	VFMO	USVM	Difference
Max Drawdown Largest peak-to-trough decline	-36.77%	-42.38%	+5.61%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-8.36%	-2.62%
Max Drawdown (3Y) Largest decline over 3 years	-24.40%	-24.34%	-0.06%
Max Drawdown (5Y) Largest decline over 5 years	-25.80%	-25.27%	-0.53%
Current Drawdown Current decline from peak	-6.65%	-0.24%	-6.41%
Average Drawdown Average peak-to-trough decline	-7.70%	-7.80%	+0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	2.20%	+0.95%

Volatility

VFMO vs. USVM - Volatility Comparison

Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 7.74% compared to VictoryShares US Small Mid Cap Value Momentum ETF (USVM) at 2.81%. This indicates that VFMO's price experiences larger fluctuations and is considered to be riskier than USVM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMO	USVM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.74%	2.81%	+4.93%
Volatility (6M) Calculated over the trailing 6-month period	18.20%	10.85%	+7.35%
Volatility (1Y) Calculated over the trailing 1-year period	22.98%	14.80%	+8.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.00%	19.56%	+2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.66%	21.90%	+1.76%

VFMO vs. USVM - Expense Ratio Comparison

VFMO has a 0.13% expense ratio, which is lower than USVM's 0.29% expense ratio.

Dividends

VFMO vs. USVM - Dividend Comparison

VFMO's dividend yield for the trailing twelve months is around 0.60%, less than USVM's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
USVM VictoryShares US Small Mid Cap Value Momentum ETF	1.82%	1.84%	1.75%	1.63%	1.43%	0.70%	1.21%	1.77%	1.43%	0.65%
VFMO Vanguard U.S. Momentum Factor ETF	0.60%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%	0.00%

Frequently Asked Questions

Can I hold both VFMO and USVM in my portfolio?

VFMO and USVM have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMO or USVM?

VFMO has higher volatility (7.74%) compared to USVM (2.81%). In terms of maximum drawdown, VFMO dropped -36.77% vs USVM's -42.38%.

Which ETF is better, VFMO or USVM?

On 5-year performance, VFMO leads with 14.61% vs 11.92% for USVM. On fees, VFMO is cheaper at 0.13% per year. On volatility, USVM has been the lower-risk option at 2.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMO or USVM?

Over the 5-year period, VFMO has performed better with a 14.61% return vs 11.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMO or USVM?

VFMO is cheaper with a 0.13% expense ratio, compared with 0.29% for USVM.

Which ETF pays a higher dividend yield, VFMO or USVM?

USVM has the higher dividend yield at 1.82%, compared with 0.60% for VFMO.

What is the main difference between VFMO and USVM?

They also come from different issuers: Vanguard and Victory Capital. Their fees differ too: 0.13% for VFMO and 0.29% for USVM.

Which has better risk-adjusted returns?

USVM currently has the higher Sharpe Ratio (2.31 vs 1.58), 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.