USMV vs VYM
iShares MSCI USA Minimum Volatility Factor ETF vs Vanguard High Dividend Yield ETF
Which is better, USMV or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM 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 25.9%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $24.1B | $81.6B |
| Dividend Yield | 1.42% | 2.22% |
| Holdings | 170 | 613 |
| YTD Return | +6.80% | +13.91%Best |
| 1Y Return | +6.23% | +17.57%Best |
| 3Y Return (annualized) | +11.81% | +18.12%Best |
| 5Y Return (annualized) | +7.06% | +12.17%Best |
| Volatility (annualized) | 11.2%Best | 12.9% |
| Max Drawdown | -33.1%Best | -35.7% |
| $10,000 over 5 years | $14,065 | $17,758Best |
| Top 10 Weight | 15.1%Best | 25.9% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 18, 2011 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 11, 2026 (14.9 years).
USMV vs VYM 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 VYM Performance
iShares MSCI USA Minimum Volatility Factor ETF (USMV) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USMV returned +6.23% while VYM returned +17.57%. Year to date, USMV is up 6.80% versus a gain of 13.91% for VYM.
Over three years, USMV compounded at +11.81% per year against +18.12% for VYM; over five years the annualized figures are +7.06% and +12.17% respectively. Across the full 15-year window we track, VYM has the edge at +10.54% annualized vs +10.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 12.9% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.42% against 2.22% for VYM.
Holdings Overlap
45.2% of USMV's money is in holdings VYM also owns. 48.3% of VYM's money is in holdings USMV also owns.
The two portfolios partly overlap.
70 positions in common, counted across the 167 positions we hold weights for in USMV and 603 in VYM, against full books of 170 and 613.
What only one of them owns
Our book lists 498 positions for VYM that do not appear in our book for USMV (49.2% of the fund), and 96 for USMV that do not appear in VYM (53.5%).
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 VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.07% | 7.29% | 6.22% |
| JNJJohnson & Johnson | 1.50% | 2.54% | 1.04% |
| XOMExxon Mobil Corp. | 1.35% | 2.36% | 1.01% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.51% | 1.93% | 0.42% |
| MRKMerck & Co. Inc. | 1.30% | 1.32% | 0.02% |
| KOCoca Cola Co. | 1.24% | 1.31% | 0.07% |
| ABBVAbbvie Inc. | 0.68% | 1.85% | 1.17% |
| PGProcter & Gamble Company | 1.05% | 1.42% | 0.37% |
| IBMInternational Business Machines Corp. | 1.07% | 1.10% | 0.03% |
| VZVerizon Communications, Inc. | 1.37% | 0.74% | 0.63% |
48.3% of VYM is already inside USMV.
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 VYM?
USMV has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, USMV or VYM?
Over the past year USMV returned +6.23% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.25% vs +10.54% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMV or VYM?
VYM has been the more volatile fund at 12.9% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VYM -35.7%.
Should I hold both USMV and VYM?
USMV and VYM have a monthly-return correlation of 0.88, 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 VYM?
48.3% of VYM's money is in holdings USMV also owns. 48.3% of VYM's is in holdings USMV also owns. They hold 70 positions in common, counted across the 167 positions we hold weights for in USMV and 603 in VYM.
Which pays a higher dividend, USMV or VYM?
USMV yields 1.42% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than USMV?
VYM has a lower expense ratio. VYM 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 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.