USMF vs VYM
WisdomTree US Multifactor Fund vs Vanguard High Dividend Yield ETF
Which is better, USMF or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. USMF is less concentrated, with 20.7% of the fund in its ten largest positions against 25.8%.
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 | USMF | VYM |
|---|---|---|
| Expense Ratio | 0.28% | 0.04%Best |
| AUM | $265M | $78.9B |
| Dividend Yield | 1.27% | 2.37% |
| Holdings | 200 | 608 |
| YTD Return | +2.38% | +11.83%Best |
| 1Y Return | +1.87% | +15.96%Best |
| 3Y Return (annualized) | +11.35% | +18.60%Best |
| 5Y Return (annualized) | +6.72% | +11.51%Best |
| Volatility (annualized) | 14.8%Tie | 14.8%Tie |
| Max Drawdown | -36.2% | -35.7%Best |
| $10,000 over 5 years | $13,843 | $17,241Best |
| Top 10 Weight | 20.7%Best | 25.8% |
| Fund Family | WisdomTree Investments | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Jun 29, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 29, 2017 to Oct 14, 2026 (9.3 years).
USMF 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 9.3 years both funds cover.
USMF vs VYM Performance
WisdomTree US Multifactor Fund (USMF) is an ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USMF returned +1.87% while VYM returned +15.96%. Year to date, USMF is up 2.38% versus a gain of 11.83% for VYM.
Over three years, USMF compounded at +11.35% per year against +18.60% for VYM; over five years the annualized figures are +6.72% and +11.51% respectively. Across the full 9-year window we track, VYM has the edge at +9.90% annualized vs +9.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMF and VYM have been equally volatile, both at 14.8% annualized.
The deepest peak-to-trough decline in our data was -36.2% for USMF 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
USMF charges 0.28% per year while VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, USMF currently yields 1.27% against 2.37% for VYM.
Holdings Overlap
37.7% of USMF's money is in holdings VYM also owns. 36.8% of VYM's money is in holdings USMF also owns.
The two portfolios partly overlap.
82 positions in common, counted across the 201 positions we hold weights for in USMF and 602 in VYM, against full books of 200 and 608.
What only one of them owns
Our book lists 491 positions for VYM that do not appear in our book for USMF (61.0% of the fund), and 116 for USMF that do not appear in VYM (61.1%).
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 USMF | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.53% | 6.94% | 5.41% |
| JNJJohnson & Johnson - Common | 0.94% | 2.58% | 1.64% |
| ABBVAbbvie Inc. | 0.70% | 1.83% | 1.13% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.68% | 1.76% | 1.08% |
| MRKMerck & Company Inc | 0.88% | 1.47% | 0.59% |
| BACBank of America Corp.: Financials | 0.53% | 1.65% | 1.12% |
| CATCaterpillar, Inc. | 0.60% | 1.46% | 0.86% |
| UNHUnitedhealth Group, Inc. | 0.61% | 1.42% | 0.81% |
| KOCoca Cola Co. | 0.59% | 1.39% | 0.80% |
| GSGoldman Sachs Group Inc/The | 0.46% | 1.12% | 0.66% |
37.7% of USMF is already inside VYM.
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, USMF or VYM?
USMF has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, USMF or VYM?
Over the past year USMF returned +1.87% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USMF annualized +9.81% vs +9.90% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMF or VYM?
USMF and VYM have been equally volatile, both at 14.8% annualized. Worst drawdown: USMF -36.2% vs VYM -35.7%.
Should I hold both USMF and VYM?
USMF and VYM have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between USMF and VYM?
37.7% of USMF's money is in holdings VYM also owns. 36.8% of VYM's is in holdings USMF also owns. They hold 82 positions in common, counted across the 201 positions we hold weights for in USMF and 602 in VYM.
Which pays a higher dividend, USMF or VYM?
USMF yields 1.27% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than USMF?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. USMF is less concentrated, with 20.7% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.