USMV vs VTI
iShares MSCI USA Minimum Volatility Factor ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, USMV or VTI?
VTI has been ahead.
VTI has a lower expense ratio. VTI 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 33.3%.
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 | USMV | VTI |
|---|---|---|
| Expense Ratio | 0.15% | 0.03%Best |
| AUM | $23.3B | $690.1B |
| Dividend Yield | 1.42% | 1.03% |
| Holdings | 178 | 3,524 |
| YTD Return | +5.30% | +13.35%Best |
| 1Y Return | +4.42% | +15.92%Best |
| 3Y Return (annualized) | +12.74% | +23.41%Best |
| 5Y Return (annualized) | +7.64% | +12.83%Best |
| Volatility (annualized) | 11.2%Best | 14.3% |
| Max Drawdown | -33.1%Best | -35.0% |
| $10,000 over 5 years | $14,450 | $18,286Best |
| Top 10 Weight | 15.1%Best | 33.3% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 18, 2011 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 2, 2026 (15 years).
USMV vs VTI 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 15 years both funds cover.
USMV vs VTI Performance
iShares MSCI USA Minimum Volatility Factor ETF (USMV) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year USMV returned +4.42% while VTI returned +15.92%. Year to date, USMV is up 5.30% versus a gain of 13.35% for VTI.
Over three years, USMV compounded at +12.74% per year against +23.41% for VTI; over five years the annualized figures are +7.64% and +12.83% respectively. Across the full 15-year window we track, VTI has the edge at +13.44% annualized vs +10.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USMV charges 0.15% per year while VTI 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 1.03% for VTI.
Holdings Overlap
98.9% of USMV's money is in holdings VTI also owns. 60.3% of VTI's money is in holdings USMV also owns.
Most of USMV is already inside VTI. Owning both mostly buys the same companies twice.
171 positions in common, counted across the 175 positions we hold weights for in USMV and 3,463 in VTI, against full books of 178 and 3,524.
What only one of them owns
Our book lists 982 positions for VTI that do not appear in our book for USMV (37.3% of the fund), and 4 for USMV that do not appear in VTI (1.0%).
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
| Stock | Weight in USMV | Weight in VTI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 1.53% | 6.40% | 4.87% |
| AAPLApple, Inc | 0.96% | 6.29% | 5.33% |
| MSFTMicrosoft Corp | 1.56% | 4.79% | 3.23% |
| AMZNAmazon.Com Inc | 0.13% | 3.65% | 3.52% |
| AVGOBroadcom Inc | 0.94% | 2.56% | 1.62% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 1.46% | 1.28% | 0.18% |
| GOOGAlphabet Inc. C | 0.38% | 2.31% | 1.93% |
| XOMExxon Mobil Corp. | 1.48% | 0.89% | 0.59% |
| JNJJohnson & Johnson - Common | 1.48% | 0.86% | 0.62% |
| LLYEli Lilly & Co. | 0.76% | 1.35% | 0.59% |
98.9% of USMV is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, USMV or VTI?
USMV has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option, by $12 a year on a $10,000 investment.
Which performed better, USMV or VTI?
Over the past year USMV returned +4.42% vs +15.92% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.11% vs +13.44% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMV or VTI?
VTI has been the more volatile fund at 14.3% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VTI -35.0%.
Should I hold both USMV and VTI?
USMV and VTI have a monthly-return correlation of 0.85, 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 VTI?
98.9% of USMV's money is in holdings VTI also owns. 60.3% of VTI's is in holdings USMV also owns. They hold 171 positions in common, counted across the 175 positions we hold weights for in USMV and 3,463 in VTI.
Which pays a higher dividend, USMV or VTI?
USMV yields 1.42% while VTI yields 1.03%, so USMV currently pays the higher dividend yield.
Is VTI better than USMV?
VTI has a lower expense ratio. VTI 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.