USMC vs VOO
Principal U.S. Mega-Cap ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | USMC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $3.6B | $979.0B | |
| Dividend Yield | 0.75% | 1.09% | |
| Holdings | 28 | 509 | |
| YTD Return | +12.56% | +13.80% | |
| 1Y Return | +21.86% | +23.71% | |
| 3Y Return (annualized) | +21.07% | +21.50% | |
| 5Y Return (annualized) | +14.58% | +13.44% | |
| Volatility (annualized) | 15.4% | 14.1% | |
| Max Drawdown | -30.0% | -34.3% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 11, 2017 | Sep 7, 2010 |
USMC vs VOO Performance
Principal U.S. Mega-Cap ETF (USMC) is a ETF from Principal Funds and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year USMC returned +21.86% while VOO returned +23.71%. Year to date, USMC is up 12.56% versus a gain of 13.80% for VOO.
Over three years, USMC compounded at +21.07% per year against +21.50% for VOO; over five years the annualized figures are +14.58% and +13.44% respectively. Across the full 9-year window we track, USMC has the edge at +14.45% annualized vs +13.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.1% for VOO. 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 0.75% against 1.09% for VOO.
Holdings Overlap
USMC and VOO share 26 holdings out of 506 unique holdings combined, representing a 47.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $9 per year of difference.
Which performed better, USMC or VOO?
Over the past year USMC returned +21.86% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), USMC annualized +14.45% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, USMC or VOO?
USMC has been the more volatile fund at 15.4% annualized versus 14.1% for VOO. 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between USMC and VOO?
USMC and VOO share 26 common holdings with a 47.1% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, USMC or VOO?
USMC yields 0.75% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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