VFMV vs. USMV
Compare and contrast key facts about Vanguard U.S. Minimum Volatility ETF (VFMV) and iShares Edge MSCI Min Vol USA ETF (USMV).
VFMV and USMV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFMV is managed by Vanguard. It was launched on Feb 13, 2018. 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFMV or USMV.
Key characteristics
| VFMV | USMV | |
|---|---|---|
| YTD Return | 4.84% | 4.17% |
| 1Y Return | 13.26% | 12.40% |
| 3Y Return (Ann) | 6.44% | 5.75% |
| 5Y Return (Ann) | 7.56% | 8.22% |
| Sharpe Ratio | 1.60 | 1.62 |
| Daily Std Dev | 9.02% | 8.57% |
| Max Drawdown | -33.64% | -33.10% |
| Current Drawdown | -2.29% | -3.17% |
Correlation
The correlation between VFMV and USMV 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
VFMV vs. USMV - Performance Comparison
In the year-to-date period, VFMV achieves a 4.84% return, which is significantly higher than USMV's 4.17% 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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VFMV vs. USMV - Expense Ratio Comparison
VFMV has a 0.13% expense ratio, which is lower than USMV's 0.15% expense ratio. Despite the difference, 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
VFMV vs. USMV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Minimum Volatility ETF (VFMV) and iShares Edge MSCI Min Vol USA ETF (USMV). 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
VFMV vs. USMV - Dividend Comparison
VFMV's dividend yield for the trailing twelve months is around 1.78%, less than USMV's 1.80% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFMV Vanguard U.S. Minimum Volatility ETF | 1.78% | 2.20% | 2.08% | 1.31% | 2.14% | 2.43% | 2.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
USMV iShares Edge MSCI Min Vol USA ETF | 1.80% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% | 1.88% | 2.18% |
Drawdowns
VFMV vs. USMV - Drawdown Comparison
The maximum VFMV drawdown since its inception was -33.64%, roughly equal to the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for VFMV and USMV. For additional features, visit the drawdowns tool.
Volatility
VFMV vs. USMV - Volatility Comparison
Vanguard U.S. Minimum Volatility ETF (VFMV) has a higher volatility of 2.47% compared to iShares Edge MSCI Min Vol USA ETF (USMV) at 2.19%. This indicates that VFMV's price experiences larger fluctuations and is considered to be riskier than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.