USMF vs VYM
WisdomTree US Multifactor Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | USMF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.04% | |
| AUM | $293M | $81.6B | |
| Dividend Yield | 1.32% | 2.24% | |
| Holdings | 200 | 616 | |
| YTD Return | +3.31% | +14.84% | |
| 1Y Return | +2.31% | +20.88% | |
| 3Y Return (annualized) | +11.43% | +18.34% | |
| 5Y Return (annualized) | +6.65% | +12.04% | |
| Volatility (annualized) | 14.9% | 14.6% | |
| Max Drawdown | -36.2% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2017 | Nov 10, 2006 |
USMF vs VYM Performance
WisdomTree US Multifactor Fund (USMF) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USMF returned +2.31% while VYM returned +20.88%. Year to date, USMF is up 3.31% versus a gain of 14.84% for VYM.
Over three years, USMF compounded at +11.43% per year against +18.34% for VYM; over five years the annualized figures are +6.65% and +12.04% respectively. Across the full 9-year window we track, USMF has the edge at +10.06% annualized vs +7.01%. 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 14.6% 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 -36.2% for USMF and -58.8% for VYM. 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 0.92. 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 VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, USMF currently yields 1.32% against 2.24% for VYM.
Holdings Overlap
USMF and VYM share 76 holdings out of 727 unique holdings combined, representing a 19.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USMF or VYM?
USMF has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, USMF or VYM?
Over the past year USMF returned +2.31% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USMF annualized +10.06% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, USMF or VYM?
USMF has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: USMF -36.2% vs VYM -58.8%.
Should I hold both USMF and VYM?
USMF and VYM have a monthly-return correlation of 0.92, 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 VYM?
USMF and VYM share 76 common holdings with a 19.0% weight overlap. Combined, they hold 727 unique securities.
Which pays a higher dividend, USMF or VYM?
USMF yields 1.32% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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