USMC vs VTI
Principal U.S. Mega-Cap ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | USMC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $3.6B | $663.5B | |
| Dividend Yield | 0.75% | 1.07% | |
| Holdings | 28 | 3,543 | |
| YTD Return | +12.79% | +14.16% | |
| 1Y Return | +20.54% | +23.62% | |
| 3Y Return (annualized) | +21.52% | +21.43% | |
| 5Y Return (annualized) | +14.58% | +12.33% | |
| Volatility (annualized) | 15.5% | 15.3% | |
| Max Drawdown | -30.0% | -56.6% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 11, 2017 | May 24, 2001 |
USMC vs VTI Performance
Principal U.S. Mega-Cap ETF (USMC) is a ETF from Principal Funds and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year USMC returned +20.54% while VTI returned +23.62%. Year to date, USMC is up 12.79% versus a gain of 14.16% for VTI.
Over three years, USMC compounded at +21.52% per year against +21.43% for VTI; over five years the annualized figures are +14.58% and +12.33% respectively. Across the full 9-year window we track, USMC has the edge at +14.46% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.96. 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 VTI 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 1.07% for VTI.
Holdings Overlap
USMC and VTI share 26 holdings out of 2784 unique holdings combined, representing a 41.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USMC or VTI?
USMC has an expense ratio of 0.12% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, USMC or VTI?
Over the past year USMC returned +20.54% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), USMC annualized +14.46% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, USMC or VTI?
USMC has been the more volatile fund at 15.5% annualized versus 15.3% for VTI. Worst drawdown: USMC -30.0% vs VTI -56.6%.
Should I hold both USMC and VTI?
USMC and VTI have a monthly-return correlation of 0.96, 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 VTI?
USMC and VTI share 26 common holdings with a 41.7% weight overlap. Combined, they hold 2784 unique securities.
Which pays a higher dividend, USMC or VTI?
USMC yields 0.75% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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