VSLU vs. USMV

Last updated Jul 15, 2026

VSLU (Applied Finance Valuation Large Cap US ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both Large Cap Blend Equities funds. VSLU is actively managed, while USMV is passively managed. Over the past 5 years, VSLU returned 13.22%/yr vs 6.93%/yr for USMV. A 0.74 correlation means they provide meaningful diversification when combined. VSLU charges 0.49%/yr vs 0.15%/yr for USMV.

Performance

VSLU vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Applied Finance Valuation Large Cap US ETF (VSLU) and iShares MSCI USA Min Vol Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSLU achieves a 6.53% return, which is significantly higher than USMV's 3.64% return.

VSLU

• 1D: -0.04%
• 1M: 2.38%
• 6M: 6.31%
• YTD: 6.53%
• 1Y: 19.59%
• 3Y*: 19.88%
• 5Y*: 13.22%
• 10Y*: —

USMV

• 1D: -0.96%
• 1M: 1.18%
• 6M: 3.50%
• YTD: 3.64%
• 1Y: 5.50%
• 3Y*: 11.07%
• 5Y*: 6.93%
• 10Y*: 9.48%

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

VSLU vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VSLU Applied Finance Valuation Large Cap US ETF	6.53%	21.52%	23.80%	26.79%	-16.05%	14.11%
USMV iShares MSCI USA Min Vol Factor ETF	3.64%	7.65%	15.74%	10.33%	-9.43%	13.34%

Correlation

The correlation between VSLU and USMV is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Apr 30, 2021	0.74

Over the past year, the correlation between VSLU and USMV has dropped to 0.47 - well below their long-term average of 0.74, suggesting their price drivers have been diverging.

VSLU vs. USMV - Sectors Allocation Comparison

Sectors	VSLU	USMV
Technology	36.5%	33.9%
Communication Services	13.1%	6.2%
Healthcare	12.3%	12.6%
Consumer Cyclical	10.8%	5.7%
Financial Services	9.5%	11.7%
Industrials	7.6%	6.1%
Consumer Defensive	4.3%	9.4%
Energy	2.0%	2.7%
Basic Materials	1.1%	2.4%
Utilities	1.0%	6.9%
Real Estate	0.8%	2.5%

Return for Risk

VSLU vs. USMV — Risk / Return Rank

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

VSLU

VSLU Risk / Return Rank: 57
VSLU Sharpe Ratio Rank: 58
VSLU Sortino Ratio Rank: 57
VSLU Omega Ratio Rank: 56
VSLU Calmar Ratio Rank: 54
VSLU Martin Ratio Rank: 62

USMV

USMV Risk / Return Rank: 22
USMV Sharpe Ratio Rank: 23
USMV Sortino Ratio Rank: 21
USMV Omega Ratio Rank: 20
USMV Calmar Ratio Rank: 23
USMV Martin Ratio Rank: 26

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.

VSLU vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Applied Finance Valuation Large Cap US ETF (VSLU) and iShares MSCI USA Min Vol Factor 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.

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.

	VSLU	USMV	Difference
Sharpe ratio: Return per unit of total volatility	1.57	0.65	+0.92
Sortino ratio: Return per unit of downside risk	2.17	0.96	+1.21
Omega ratio: Gain probability vs. loss probability	1.28	1.11	+0.17
Calmar ratio: Return relative to maximum drawdown	2.15	0.86	+1.29
Martin ratio: Return relative to average drawdown	8.87	2.80	+6.08

VSLU vs. USMV - Sharpe Ratio Comparison

The current VSLU Sharpe Ratio is 1.57, which is higher than the USMV Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of VSLU and USMV, 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

VSLU vs. USMV - Drawdown Comparison

The maximum VSLU drawdown since its inception was -23.86%, smaller than the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for VSLU and USMV.

Drawdown Indicators

	VSLU	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-23.86%	-33.10%	+9.24%
Max Drawdown (1Y) Largest decline over 1 year	-9.16%	-6.46%	-2.70%
Max Drawdown (3Y) Largest decline over 3 years	-17.89%	-9.36%	-8.53%
Max Drawdown (5Y) Largest decline over 5 years	-23.86%	-17.93%	-5.93%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.10%	—
Current Drawdown Current decline from peak	-0.58%	-1.49%	+0.91%
Average Drawdown Average peak-to-trough decline	-4.83%	-2.87%	-1.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.21%	1.97%	+0.24%

Volatility

VSLU vs. USMV - Volatility Comparison

Applied Finance Valuation Large Cap US ETF (VSLU) and iShares MSCI USA Min Vol Factor ETF (USMV) have volatilities of 2.75% and 2.75%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSLU	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.75%	2.75%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	9.54%	6.30%	+3.24%
Volatility (1Y) Calculated over the trailing 1-year period	12.56%	8.52%	+4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.22%	12.37%	+3.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.05%	14.50%	+1.55%

VSLU vs. USMV - Expense Ratio Comparison

VSLU has a 0.49% expense ratio, which is higher than USMV's 0.15% expense ratio.

Dividends

VSLU vs. USMV - Dividend Comparison

VSLU's dividend yield for the trailing twelve months is around 0.43%, less than USMV's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USMV iShares MSCI USA Min Vol Factor ETF	1.49%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%
VSLU Applied Finance Valuation Large Cap US ETF	0.43%	0.46%	0.60%	0.60%	0.99%	0.57%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSLU and USMV in my portfolio?

VSLU and USMV have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSLU or USMV?

USMV has higher volatility (2.75%) compared to VSLU (2.75%). In terms of maximum drawdown, VSLU dropped -23.86% vs USMV's -33.10%.

Which ETF is better, VSLU or USMV?

On 5-year performance, VSLU leads with 13.22% vs 6.93% for USMV. On fees, USMV is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSLU or USMV?

Over the 5-year period, VSLU has performed better with a 13.22% return vs 6.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSLU or USMV?

USMV is cheaper with a 0.15% expense ratio, compared with 0.49% for VSLU.

Which ETF pays a higher dividend yield, VSLU or USMV?

USMV has the higher dividend yield at 1.49%, compared with 0.43% for VSLU.

What is the main difference between VSLU and USMV?

They also come from different issuers: Applied Finance and iShares. Their fees differ too: 0.49% for VSLU and 0.15% for USMV.

Which has better risk-adjusted returns?

VSLU currently has the higher Sharpe Ratio (1.57 vs 0.65), 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.