ETY vs USMC
Eaton Vance Tax-Managed Diversified Equity Income Fund vs Principal U.S. Mega-Cap ETF
Which is better, ETY or USMC?
USMC has been ahead.
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. ETY is less concentrated, with 50.5% of the fund in its ten largest positions against 55.3%.
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 | ETY | USMC |
|---|---|---|
| Expense Ratio | 1.06% | 0.12%Best |
| AUM | $1.8B | $5.2B |
| Dividend Yield | 7.52% | 0.74% |
| Holdings | 61 | 58 |
| YTD Return | -2.20% | +13.98%Best |
| 1Y Return | -2.84% | +14.91%Best |
| 3Y Return (annualized) | +15.48% | +22.22%Best |
| 5Y Return (annualized) | +8.08% | +14.81%Best |
| Volatility (annualized) | 18.4% | 15.3%Best |
| Max Drawdown | -43.6% | -30.0%Best |
| $10,000 over 5 years | $14,748 | $19,948Best |
| Top 10 Weight | 50.5%Best | 55.3% |
| Fund Family | Eaton Vance | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 27, 2006 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Oct 14, 2026 (9 years).
ETY vs USMC 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 9 years both funds cover.
ETY vs USMC Performance
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is an ETF from Eaton Vance and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year ETY returned -2.84% while USMC returned +14.91%. Year to date, ETY is down 2.20% versus a gain of 13.98% for USMC.
Over three years, ETY compounded at +15.48% per year against +22.22% for USMC; over five years the annualized figures are +8.08% and +14.81% respectively. Across the full 9-year window we track, USMC has the edge at +14.29% annualized vs +7.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETY has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 15.3% for USMC. 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 -43.6% for ETY and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETY charges 1.06% per year while USMC charges 0.12%. On a $10,000 position that is $106 vs $12 annually, a gap of $94 per year that compounds over a long holding period. On income, ETY currently yields 7.52% against 0.74% for USMC.
Holdings Overlap
50.1% of ETY's money is in holdings USMC also owns. 63.3% of USMC's money is in holdings ETY also owns.
The two portfolios partly overlap.
14 positions in common, counted across the 58 positions we hold weights for in ETY and 27 in USMC, against full books of 61 and 58.
What only one of them owns
Our book lists 13 positions for USMC that do not appear in our book for ETY (36.7% of the fund), and 38 for ETY that do not appear in USMC (46.7%).
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 ETY | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 9.28% | 7.99% | 1.29% |
| AAPLApple, Inc | 7.05% | 7.40% | 0.35% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 6.19% | 5.55% | 0.64% |
| AMZNAmazon.Com Inc | 5.50% | 3.77% | 1.73% |
| MUMicron Technology, Inc. | 1.59% | 7.18% | 5.59% |
| AVGOBroadcom Inc | 4.14% | 4.44% | 0.30% |
| JPMJpmorgan Chase | 3.23% | 4.65% | 1.42% |
| VVisa Inc-class A Shares | 2.76% | 4.54% | 1.78% |
| METAMeta Platform Inc | 2.35% | 3.92% | 1.57% |
| ABBVAbbvie Inc Accenture Plc, Class A | 2.05% | 3.37% | 1.32% |
63.3% of USMC is already inside ETY.
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, ETY or USMC?
ETY has an expense ratio of 1.06% while USMC charges 0.12%. USMC is the cheaper option, by $94 a year on a $10,000 investment.
Which performed better, ETY or USMC?
Over the past year ETY returned -2.84% vs +14.91% for USMC, so USMC leads on 1-year performance. Over the longest common window we track (9 years), ETY annualized +7.26% vs +14.29% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ETY or USMC?
ETY has been the more volatile fund at 18.4% annualized versus 15.3% for USMC. Worst drawdown: ETY -43.6% vs USMC -30.0%.
Should I hold both ETY and USMC?
ETY and USMC have a monthly-return correlation of 0.89, 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 ETY and USMC?
63.3% of USMC's money is in holdings ETY also owns. 63.3% of USMC's is in holdings ETY also owns. They hold 14 positions in common, counted across the 58 positions we hold weights for in ETY and 27 in USMC.
Which pays a higher dividend, ETY or USMC?
ETY yields 7.52% while USMC yields 0.74%, so ETY currently pays the higher dividend yield.
Is USMC better than ETY?
USMC has a lower expense ratio. USMC led over 1Y, 3Y, 5Y and the full window. ETY is less concentrated, with 50.5% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.