USMC vs VOO
Principal U.S. Mega-Cap ETF vs Vanguard S&P 500 ETF
Which is better, USMC or VOO?
Nearly the same fund. VOO costs less.
VOO has a lower expense ratio. USMC led over 5Y and the full window, VOO over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.97. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 55.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | USMC | VOO |
|---|---|---|
| Expense Ratio | 0.12% | 0.03%Best |
| AUM | $5.1B | $997.4B |
| Dividend Yield | 0.74% | 1.04% |
| Holdings | 29 | 509 |
| YTD Return | +13.49%Best | +13.31% |
| 1Y Return | +13.96% | +17.07%Best |
| 3Y Return (annualized) | +22.36% | +22.72%Best |
| 5Y Return (annualized) | +14.62%Best | +13.19% |
| Volatility (annualized) | 15.4%Best | 16.2% |
| Max Drawdown | -30.0%Best | -34.3% |
| $10,000 over 5 years | $19,783Best | $18,580 |
| Top 10 Weight | 55.4% | 37.6%Best |
| Fund Family | Principal Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 11, 2017 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 23, 2026 (8.9 years).
USMC vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.9 years both funds cover.
USMC vs VOO Performance
Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year USMC returned +13.96% while VOO returned +17.07%. Year to date, USMC is up 13.49% versus a gain of 13.31% for VOO.
Over three years, USMC compounded at +22.36% per year against +22.72% for VOO; over five years the annualized figures are +14.62% and +13.19% respectively. Across the full 9-year window we track, USMC has the edge at +14.33% annualized vs +14.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 15.4% for USMC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -30.0% for USMC and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
USMC charges 0.12% per year while VOO charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, USMC currently yields 0.74% against 1.04% for VOO.
Holdings Overlap
99.8% of USMC's money is in holdings VOO also owns. 48.8% of VOO's money is in holdings USMC also owns.
Most of USMC is already inside VOO. Owning both mostly buys the same companies twice.
26 positions in common, counted across the 27 positions we hold weights for in USMC and 494 in VOO, against full books of 29 and 509.
What only one of them owns
Measured across the 27 and 494 positions we hold weights for.
VOO holds 461 positions USMC does not, 50.4% of the fund.
Largest: GOOG 2.62%, AMD 1.21%, CSCO 0.71%, INTC 0.66%, AMAT 0.63%
Top Shared Holdings
| Stock | Weight in USMC | Weight in VOO | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.09% | 7.55% | 0.54% |
| AAPLApple, Inc | 7.06% | 7.05% | 0.01% |
| MSFTMicrosoft Corp | 5.69% | 5.36% | 0.33% |
| GOOGLAlphabet Inc,class A | 5.35% | 3.24% | 2.11% |
| MUMicron Technology, Inc. | 7.06% | 1.44% | 5.62% |
| AMZNAmazon.Com Inc | 3.81% | 4.13% | 0.32% |
| AVGOBroadcom Inc | 4.55% | 2.86% | 1.69% |
| JPMJpmorgan Chase | 4.65% | 1.46% | 3.19% |
| VVisa Inc Class A | 4.65% | 0.93% | 3.72% |
| METAMeta Platforms Inc | 3.46% | 1.90% | 1.56% |
99.8% of USMC is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, USMC or VOO?
USMC has an expense ratio of 0.12% while VOO charges 0.03%. VOO is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, USMC or VOO?
Over the past year USMC returned +13.96% vs +17.07% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), USMC annualized +14.33% vs +14.16% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMC or VOO?
VOO has been the more volatile fund at 16.2% annualized versus 15.4% for USMC. Worst drawdown: USMC -30.0% vs VOO -34.3%.
Should I hold both USMC and VOO?
USMC and VOO have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between USMC and VOO?
99.8% of USMC's money is in holdings VOO also owns. 48.8% of VOO's is in holdings USMC also owns. They hold 26 positions in common, counted across the 27 positions we hold weights for in USMC and 494 in VOO.
Which pays a higher dividend, USMC or VOO?
USMC yields 0.74% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is VOO better than USMC?
VOO has a lower expense ratio. USMC led over 5Y and the full window, VOO over 1Y and 3Y. The two have moved almost in lockstep, correlation 0.97. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 55.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.