USMF vs VOO
WisdomTree US Multifactor Fund 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 509 holdings.
Side-by-Side Comparison
| Metric | USMF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $293M | $997.4B | |
| Dividend Yield | 1.32% | 1.08% | |
| Holdings | 200 | 509 | |
| YTD Return | +3.31% | +13.25% | |
| 1Y Return | +2.31% | +19.96% | |
| 3Y Return (annualized) | +11.43% | +21.27% | |
| 5Y Return (annualized) | +6.65% | +12.81% | |
| Volatility (annualized) | 14.9% | 14.1% | |
| Max Drawdown | -36.2% | -34.3% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2017 | Sep 7, 2010 |
USMF vs VOO Performance
WisdomTree US Multifactor Fund (USMF) is a ETF from WisdomTree Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year USMF returned +2.31% while VOO returned +19.96%. Year to date, USMF is up 3.31% versus a gain of 13.25% for VOO.
Over three years, USMF compounded at +11.43% per year against +21.27% for VOO; over five years the annualized figures are +6.65% and +12.81% respectively. Across the full 9-year window we track, VOO has the edge at +13.49% annualized vs +10.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMF has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -36.2% for USMF 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
USMF charges 0.28% per year while VOO charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, USMF currently yields 1.32% against 1.08% for VOO.
Holdings Overlap
USMF and VOO share 116 holdings out of 589 unique holdings combined, representing a 31.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USMF or VOO?
USMF has an expense ratio of 0.28% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, USMF or VOO?
Over the past year USMF returned +2.31% vs +19.96% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), USMF annualized +10.06% vs +13.49% for VOO. Past performance does not guarantee future results.
Which is riskier, USMF or VOO?
USMF has been the more volatile fund at 14.9% annualized versus 14.1% for VOO. Worst drawdown: USMF -36.2% vs VOO -34.3%.
Should I hold both USMF and VOO?
USMF and VOO have a monthly-return correlation of 0.91, 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 USMF and VOO?
USMF and VOO share 116 common holdings with a 31.8% weight overlap. Combined, they hold 589 unique securities.
Which pays a higher dividend, USMF or VOO?
USMF yields 1.32% while VOO yields 1.08%, so USMF currently pays the higher dividend yield.
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