USMV vs VYM
iShares MSCI USA Minimum Volatility Factor ETF 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 | USMV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $24.4B | $81.6B | |
| Dividend Yield | 1.48% | 2.24% | |
| Holdings | 170 | 616 | |
| YTD Return | +8.54% | +15.34% | |
| 1Y Return | +8.62% | +23.24% | |
| 3Y Return (annualized) | +12.83% | +19.22% | |
| 5Y Return (annualized) | +7.10% | +12.21% | |
| Volatility (annualized) | 11.2% | 14.6% | |
| Max Drawdown | -33.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2011 | Nov 10, 2006 |
USMV vs VYM Performance
iShares MSCI USA Minimum Volatility Factor ETF (USMV) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USMV returned +8.62% while VYM returned +23.24%. Year to date, USMV is up 8.54% versus a gain of 15.34% for VYM.
Over three years, USMV compounded at +12.83% per year against +19.22% for VYM; over five years the annualized figures are +7.10% and +12.21% respectively. Across the full 15-year window we track, USMV has the edge at +10.41% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USMV charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, USMV currently yields 1.48% against 2.24% for VYM.
Holdings Overlap
USMV and VYM share 69 holdings out of 701 unique holdings combined, representing a 28.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USMV or VYM?
USMV has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, USMV or VYM?
Over the past year USMV returned +8.62% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.41% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, USMV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VYM -58.8%.
Should I hold both USMV and VYM?
USMV and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USMV and VYM?
USMV and VYM share 69 common holdings with a 28.4% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, USMV or VYM?
USMV yields 1.48% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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