USMV vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricUSMVVXUSWinner
Expense Ratio0.15%0.05%
AUM$23.5B$156.5B
Dividend Yield1.50%2.60%
Holdings1708,747
YTD Return+6.90%+13.57%
1Y Return+8.08%+28.78%
3Y Return (annualized)+11.74%+18.63%
5Y Return (annualized)+7.18%+9.05%
Volatility (annualized)11.2%15.1%
Max Drawdown-33.1%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 18, 2011Jan 26, 2011

USMV vs VXUS Performance

iShares MSCI USA Minimum Volatility Factor ETF (USMV) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year USMV returned +8.08% while VXUS returned +28.78%. Year to date, USMV is up 6.90% versus a gain of 13.57% for VXUS.

Over three years, USMV compounded at +11.74% per year against +18.63% for VXUS; over five years the annualized figures are +7.18% and +9.05% respectively. Across the full 15-year window we track, USMV has the edge at +10.33% annualized vs +4.80%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

USMV charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, USMV currently yields 1.50% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

USMV and VXUS share 4 holdings out of 8023 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in USMVWeight in VXUSDifference
WCN:CA1.25%0.10%1.15%
2345:TW0.55%0.05%0.50%
KR0.58%0.00%0.58%
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Frequently Asked Questions

Which is cheaper, USMV or VXUS?

USMV has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, USMV or VXUS?

Over the past year USMV returned +8.08% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), USMV annualized +10.33% vs +4.80% for VXUS. Past performance does not guarantee future results.

Which is riskier, USMV or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 11.2% for USMV. Worst drawdown: USMV -33.1% vs VXUS -39.9%.

Should I hold both USMV and VXUS?

USMV and VXUS have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between USMV and VXUS?

USMV and VXUS share 4 common holdings with a 0.1% weight overlap. Combined, they hold 8023 unique securities.

Which pays a higher dividend, USMV or VXUS?

USMV yields 1.50% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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