USMV vs VOO: Head-to-Head Comparison
USMV vs VOO: iShares MSCI USA Min Volatility Factor ETF has an expense ratio of 0.15% while Vanguard S&P 500 ETF charges 0.03%. USMV holds 170 securities vs VOO's 503. 5-year returns: 9.80% vs 15.80%.
Last updated: April 2026
Factor
Quick Verdict
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | USMV | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| AUM | $25.0B | $560.0B |
| Dividend Yield | 1.80% | 1.30% |
| Holdings | 170 | 503 |
| 1-Year Return | 18.50% | 26.70% |
| 5-Year Return (Ann.) | 9.80% | 15.80% |
| 10-Year Return (Ann.) | 10.20% | 13.30% |
| Beta | 0.72 | 1.00 |
| P/E Ratio | 22.8 | 25.8 |
USMV 5-year annualized return is 9.80% compared to VOO's 15.80%. Over 10 years, USMV returned 10.20% vs VOO's 13.30%.
View data table
| Period | USMV Return | VOO Return |
|---|---|---|
| YTD | 2.50% | 3.20% |
| 1 Year | 18.50% | 26.70% |
| 3 Year | 8.50% | 11.20% |
| 5 Year | 9.80% | 15.80% |
| 10 Year | 10.20% | 13.30% |
Key Differences Between USMV and VOO
USMV (iShares MSCI USA Min Volatility Factor ETF) is a low volatility fund managed by BlackRock. USMV seeks to build a portfolio of U.S. stocks that together exhibit lower overall volatility than the broad market. Using an optimization process, it selects and weights stocks to minimize portfolio-level risk rather than simply picking low-beta stocks. Beginners who want equity market participation with a smoother ride and smaller drawdowns often find USMV helps them stay invested during turbulent times.
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
The most notable differences are in fees (0.15% vs 0.03%), number of holdings (170 vs 503), and 5-year returns (9.80% vs 15.80%).
USMV vs VOO multi-factor comparison: USMV has a 0.15% expense ratio, 9.80% 5-year return, 170 holdings, 0.72 beta, and 1.80% yield. VOO has 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield.
View data table
| Metric | USMV | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| 5-Year Return | 9.80% | 15.80% |
| Holdings | 170 | 503 |
| Beta | 0.72 | 1.00 |
| Dividend Yield | 1.80% | 1.30% |
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Holdings Overlap Analysis
5%
Holdings Overlap
USMV and VOO share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
USMV and VOO share 5% of their top holdings (low overlap). USMV has 170 total holdings and VOO has 503. Common holdings include BRK.B.
View data table
| Metric | USMV | VOO |
|---|---|---|
| Overlap | 5% | 5% |
| Unique Holdings | 95% | 95% |
| Total Holdings | 170 | 503 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
USMV
Fee cost: $1,278
VOO
Fee cost: $258
Over 20 years, the fee difference amounts to $1,020 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, USMV (0.15% fee) grows to $45,332 while VOO (0.03% fee) grows to $46,351. The fee difference costs $1,019.
View data table
| Year | USMV Value | VOO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,592 | $14,673 |
| 10 | $21,291 | $21,529 |
| 15 | $31,067 | $31,590 |
| 20 | $45,332 | $46,351 |
Which One Should a Beginner Choose?
Choose USMV if: You want risk-averse investors who want equity exposure with a smoother ride, near-retirees seeking to reduce portfolio volatility without exiting stocks entirely, nervous investors who might otherwise sell during market turbulence. It's managed by BlackRock with an expense ratio of 0.15%.
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both USMV and VOO?
Absolutely! With only 5% overlap, USMV and VOO complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy USMV or VOO?▾
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals. However, both are solid options. USMV is best for investors who want risk-averse investors who want equity exposure with a smoother ride, while VOO is better suited for beginning investors looking for a simple core portfolio holding.
What is the difference between USMV and VOO?▾
USMV (iShares MSCI USA Min Volatility Factor ETF) tracks low volatility investments with 170 holdings and a 0.15% expense ratio. VOO (Vanguard S&P 500 ETF) focuses on u.s. large-cap blend with 503 holdings at 0.03%. Their top holdings overlap by 5%.
Can I own both USMV and VOO?▾
Yes! With only 5% holdings overlap, USMV and VOO complement each other well. Owning both gives you broader diversification.