USMV vs VTI
USMV vs VTI
iShares MSCI USA Minimum Volatility Factor ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | USMV | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $23.5B | $663.5B | |
| Dividend Yield | 1.50% | 1.07% | |
| Holdings | 170 | 3,543 | |
| YTD Return | +7.22% | +13.39% | |
| 1Y Return | +8.74% | +23.21% | |
| 3Y Return (annualized) | +11.83% | +20.65% | |
| 5Y Return (annualized) | +7.18% | +12.18% | |
| Volatility (annualized) | 11.2% | 15.3% | |
| Max Drawdown | -33.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2011 | May 24, 2001 |
USMV vs VTI Performance
iShares MSCI USA Minimum Volatility Factor ETF (USMV) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year USMV returned +8.74% while VTI returned +23.21%. Year to date, USMV is up 7.22% versus a gain of 13.39% for VTI.
Over three years, USMV compounded at +11.83% per year against +20.65% for VTI; over five years the annualized figures are +7.18% and +12.18% respectively. Across the full 15-year window we track, USMV has the edge at +10.35% annualized vs +8.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.85. 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 1.50% against 1.07% for VTI.
Holdings Overlap
USMV and VTI share 157 holdings out of 2793 unique holdings combined, representing a 31.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in USMV | Weight in VTI | Difference |
|---|---|---|---|
| NVDA | 1.29% | 6.32% | 5.03% |
| AAPL | 0.91% | 5.84% | 4.93% |
| MSFT | 1.35% | 3.81% | 2.46% |
| AVGO | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| JNJ | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
See all 10 holdings USMV shares with VTI Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $12 per year of difference.
Which performed better, USMV or VTI?
Over the past year USMV returned +8.74% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.35% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, USMV or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VTI -56.6%.
Should I hold both USMV and VTI?
USMV and VTI have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USMV and VTI?
USMV and VTI share 157 common holdings with a 31.3% weight overlap. Combined, they hold 2793 unique securities.
Which pays a higher dividend, USMV or VTI?
USMV yields 1.50% while VTI yields 1.07%, so USMV currently pays the higher dividend yield.
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