USMV vs VOO

USMV vs VOO

Which is better, USMV or VOO?

VOO has been ahead.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: USMV

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

MetricUSMVVOO
Expense Ratio0.15%0.03%Best
AUM$24.1B$997.4B
Dividend Yield1.42%1.04%
Holdings170509
YTD Return+6.80%+12.50%Best
1Y Return+6.23%+17.58%Best
3Y Return (annualized)+11.81%+21.27%Best
5Y Return (annualized)+7.06%+12.95%Best
Volatility (annualized)11.2%Best13.9%
Max Drawdown-33.1%Best-34.3%
$10,000 over 5 years$14,065$18,384Best
Top 10 Weight15.1%Best36.4%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionOct 18, 2011Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 11, 2026 (14.9 years).

USMV vs VOO 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 14.9 years both funds cover.

USMV vs VOO Performance

iShares MSCI USA Minimum Volatility Factor ETF (USMV) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year USMV returned +6.23% while VOO returned +17.58%. Year to date, USMV is up 6.80% versus a gain of 12.50% for VOO.

Over three years, USMV compounded at +11.81% per year against +21.27% for VOO; over five years the annualized figures are +7.06% and +12.95% respectively. Across the full 15-year window we track, VOO has the edge at +13.77% annualized vs +10.25%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 11.2% for USMV. 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 -33.1% for USMV and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

USMV charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, USMV currently yields 1.42% against 1.04% for VOO.

Holdings Overlap

USMV already in VOO92.9%
VOO already in USMV64.2%

92.9% of USMV's money is in holdings VOO also owns. 64.2% of VOO's money is in holdings USMV also owns.

Most of USMV is already inside VOO. Owning both mostly buys the same companies twice.

147 positions in common, counted across the 167 positions we hold weights for in USMV and 505 in VOO, against full books of 170 and 509.

What only one of them owns

Our book lists 349 positions for VOO that do not appear in our book for USMV (35.3% of the fund), and 19 for USMV that do not appear in VOO (5.9%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in USMVWeight in VOODifference
NVDANvidia Corp.1.37%7.51%6.14%
AAPLApple, Inc0.88%6.59%5.71%
MSFTMicrosoft Corp 4.100 Feb 06 371.69%4.30%2.61%
AVGOBroadcom Inc1.07%2.77%1.70%
AMZNAmazon.Com Inc0.14%3.62%3.48%
GOOGAlphabet Inc0.42%2.59%2.17%
BRK.BBerkshire Hathaway B1.46%1.42%0.04%
MUMicron Technology, Inc.0.68%2.02%1.34%
JNJJohnson & Johnson1.50%0.95%0.55%
CSCOCisco Systems Inc. - Ordinary Shares1.51%0.72%0.79%

92.9% of USMV is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

USMVVOO

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Frequently Asked Questions

Which is cheaper, USMV or VOO?

USMV has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option, by $12 a year on a $10,000 investment.

Which performed better, USMV or VOO?

Over the past year USMV returned +6.23% vs +17.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.25% vs +13.77% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, USMV or VOO?

VOO has been the more volatile fund at 13.9% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VOO -34.3%.

Should I hold both USMV and VOO?

USMV and VOO have a monthly-return correlation of 0.86, 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 USMV and VOO?

92.9% of USMV's money is in holdings VOO also owns. 64.2% of VOO's is in holdings USMV also owns. They hold 147 positions in common, counted across the 167 positions we hold weights for in USMV and 505 in VOO.

Which pays a higher dividend, USMV or VOO?

USMV yields 1.42% while VOO yields 1.04%, so USMV currently pays the higher dividend yield.

Is VOO better than USMV?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.