USMC vs VYM
Principal U.S. Mega-Cap ETF vs Vanguard High Dividend Yield ETF
Which is better, USMC or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. USMC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% 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 | VYM |
|---|---|---|
| Expense Ratio | 0.12% | 0.04%Best |
| AUM | $5.1B | $81.6B |
| Dividend Yield | 0.74% | 2.22% |
| Holdings | 29 | 613 |
| YTD Return | +14.32%Best | +10.96% |
| 1Y Return | +13.75% | +15.42%Best |
| 3Y Return (annualized) | +22.69%Best | +17.78% |
| 5Y Return (annualized) | +15.04%Best | +12.05% |
| Volatility (annualized) | 15.4% | 15.0%Best |
| Max Drawdown | -30.0%Best | -35.7% |
| $10,000 over 5 years | $20,149Best | $17,663 |
| Top 10 Weight | 55.4% | 26.1%Best |
| Fund Family | Principal Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 11, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 22, 2026 (8.9 years).
USMC vs VYM 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 VYM Performance
Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USMC returned +13.75% while VYM returned +15.42%. Year to date, USMC is up 14.32% versus a gain of 10.96% for VYM.
Over three years, USMC compounded at +22.69% per year against +17.78% for VYM; over five years the annualized figures are +15.04% and +12.05% respectively. Across the full 9-year window we track, USMC has the edge at +14.43% annualized vs +9.55%.
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 15.0% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USMC charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, USMC currently yields 0.74% against 2.22% for VYM.
Holdings Overlap
31.1% of USMC's money is in holdings VYM also owns. 25.5% of VYM's money is in holdings USMC also owns.
The two portfolios partly overlap.
10 positions in common, counted across the 27 positions we hold weights for in USMC and 557 in VYM, against full books of 29 and 613.
What only one of them owns
Measured across the 27 and 557 positions we hold weights for.
VYM holds 518 positions USMC does not, 71.6% of the fund.
Largest: CSCO 1.86%, UNH 1.52%, KO 1.38%, MRK 1.31%, PM 1.21%
Top Shared Holdings
| Stock | Weight in USMC | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.55% | 7.35% | 2.80% |
| JPMJpmorgan Chase | 4.65% | 3.82% | 0.83% |
| JNJJohnson & Johnson - Common | 3.26% | 2.51% | 0.75% |
| BACBank of America Corp.: Financials | 3.78% | 1.66% | 2.12% |
| ABBVAbbvie Inc. | 3.36% | 1.80% | 1.56% |
| XOMExxon Mobil Corp. | 2.27% | 2.63% | 0.36% |
| PGProcter & Gamble Company | 2.64% | 1.37% | 1.27% |
| CVXChevron Corp | 2.38% | 1.48% | 0.90% |
| CATCaterpillar, Inc. | 2.31% | 1.50% | 0.81% |
| HDHome Depot Inc/The | 1.85% | 1.34% | 0.51% |
31.1% of USMC is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, USMC or VYM?
USMC has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, USMC or VYM?
Over the past year USMC returned +13.75% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USMC annualized +14.43% vs +9.55% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMC or VYM?
USMC has been the more volatile fund at 15.4% annualized versus 15.0% for VYM. Worst drawdown: USMC -30.0% vs VYM -35.7%.
Should I hold both USMC and VYM?
USMC and VYM have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between USMC and VYM?
31.1% of USMC's money is in holdings VYM also owns. 25.5% of VYM's is in holdings USMC also owns. They hold 10 positions in common, counted across the 27 positions we hold weights for in USMC and 557 in VYM.
Which pays a higher dividend, USMC or VYM?
USMC yields 0.74% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than USMC?
VYM has a lower expense ratio. USMC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% 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.