VFMV vs. USMF

Last updated Jun 5, 2026

VFMV (Vanguard U.S. Minimum Volatility ETF) and USMF (WisdomTree US Multifactor Fund) are both Mid Cap Blend Equities funds. VFMV is actively managed, while USMF is passively managed. Over the past 5 years, VFMV returned 9.87%/yr vs 7.68%/yr for USMF. Their correlation of 0.88 suggests significant overlap in exposure. VFMV charges 0.13%/yr vs 0.28%/yr for USMF.

Performance

VFMV vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Minimum Volatility ETF (VFMV) 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, VFMV achieves a 8.76% return, which is significantly higher than USMF's 4.43% return.

VFMV

• 1D: 0.21%
• 1M: 0.96%
• YTD: 8.76%
• 6M: 8.41%
• 1Y: 13.49%
• 3Y*: 15.06%
• 5Y*: 9.87%
• 10Y*: —

USMF

• 1D: 0.08%
• 1M: 3.17%
• YTD: 4.43%
• 6M: 4.58%
• 1Y: 6.68%
• 3Y*: 14.35%
• 5Y*: 7.68%
• 10Y*: —

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

VFMV vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMV Vanguard U.S. Minimum Volatility ETF	8.76%	10.52%	16.91%	8.86%	-5.73%	20.75%	-0.19%	27.26%	-1.10%
USMF WisdomTree US Multifactor Fund	4.43%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-6.17%

Correlation

The correlation between VFMV and USMF is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.88
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	0.88

The correlation between VFMV and USMF has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

VFMV vs. USMF - Sectors Allocation Comparison

Sectors	VFMV	USMF
Technology	25.1%	35.6%
Communication Services	10.7%	10.3%
Financial Services	10.6%	11.8%
Industrials	10.1%	7.8%
Healthcare	10.1%	9.3%
Consumer Defensive	9.5%	5.2%
Consumer Cyclical	6.9%	11.1%
Utilities	6.7%	2.0%
Real Estate	6.4%	2.0%
Energy	3.9%	4.1%
Basic Materials	-	0.9%

Return for Risk

VFMV vs. USMF — Risk / Return Rank

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

VFMV

VFMV Risk / Return Rank: 47
VFMV Sharpe Ratio Rank: 45
VFMV Sortino Ratio Rank: 46
VFMV Omega Ratio Rank: 43
VFMV Calmar Ratio Rank: 46
VFMV Martin Ratio Rank: 53

USMF

USMF Risk / Return Rank: 21
USMF Sharpe Ratio Rank: 20
USMF Sortino Ratio Rank: 19
USMF Omega Ratio Rank: 18
USMF Calmar Ratio Rank: 23
USMF Martin Ratio Rank: 24

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.

VFMV vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Minimum Volatility ETF (VFMV) 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.

	VFMV	USMF	Difference
Sharpe ratio: Return per unit of total volatility	1.54	0.62	+0.92
Sortino ratio: Return per unit of downside risk	2.24	0.94	+1.30
Omega ratio: Gain probability vs. loss probability	1.27	1.11	+0.16
Calmar ratio: Return relative to maximum drawdown	2.26	1.04	+1.22
Martin ratio: Return relative to average drawdown	8.85	3.11	+5.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFMV vs. USMF - Sharpe Ratio Comparison

The current VFMV Sharpe Ratio is 1.54, which is higher than the USMF Sharpe Ratio of 0.62. The chart below compares the historical Sharpe Ratios of VFMV 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

	VFMV	USMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.54	0.62	+0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.54	+0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	0.63	+0.07

Drawdowns

VFMV vs. USMF - Drawdown Comparison

The maximum VFMV drawdown since its inception was -33.64%, smaller than the maximum USMF drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for VFMV and USMF.

Drawdown Indicators

	VFMV	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-33.64%	-36.24%	+2.60%
Max Drawdown (1Y) Largest decline over 1 year	-6.00%	-6.47%	+0.47%
Max Drawdown (3Y) Largest decline over 3 years	-10.35%	-15.39%	+5.04%
Max Drawdown (5Y) Largest decline over 5 years	-15.41%	-18.10%	+2.69%
Current Drawdown Current decline from peak	-0.81%	-0.49%	-0.32%
Average Drawdown Average peak-to-trough decline	-3.64%	-4.16%	+0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.53%	2.15%	-0.62%

Volatility

VFMV vs. USMF - Volatility Comparison

The current volatility for Vanguard U.S. Minimum Volatility ETF (VFMV) is 2.04%, while WisdomTree US Multifactor Fund (USMF) has a volatility of 2.25%. This indicates that VFMV experiences smaller price fluctuations and is considered to be less risky than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMV	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.04%	2.25%	-0.21%
Volatility (6M) Calculated over the trailing 6-month period	6.30%	7.42%	-1.12%
Volatility (1Y) Calculated over the trailing 1-year period	8.80%	10.79%	-1.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.75%	14.26%	-2.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.25%	16.96%	-2.71%

VFMV vs. USMF - Expense Ratio Comparison

VFMV has a 0.13% expense ratio, which is lower than USMF's 0.28% expense ratio.

Dividends

VFMV vs. USMF - Dividend Comparison

VFMV's dividend yield for the trailing twelve months is around 1.93%, more than USMF's 1.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMF WisdomTree US Multifactor Fund	1.31%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%
VFMV Vanguard U.S. Minimum Volatility ETF	1.93%	2.12%	1.46%	2.20%	2.08%	1.31%	2.14%	2.43%	2.29%	0.00%

Frequently Asked Questions

Can I hold both VFMV and USMF in my portfolio?

VFMV and USMF have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMV or USMF?

USMF has higher volatility (2.25%) compared to VFMV (2.04%). In terms of maximum drawdown, VFMV dropped -33.64% vs USMF's -36.24%.

Which ETF is better, VFMV or USMF?

On 5-year performance, VFMV leads with 9.87% vs 7.68% for USMF. On fees, VFMV is cheaper at 0.13% per year. On volatility, VFMV has been the lower-risk option at 2.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMV or USMF?

Over the 5-year period, VFMV has performed better with a 9.87% return vs 7.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMV or USMF?

VFMV is cheaper with a 0.13% expense ratio, compared with 0.28% for USMF.

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

VFMV has the higher dividend yield at 1.93%, compared with 1.31% for USMF.

What is the main difference between VFMV and USMF?

They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.13% for VFMV and 0.28% for USMF.

Which has better risk-adjusted returns?

VFMV currently has the higher Sharpe Ratio (1.54 vs 0.62), 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.