Dividend comparison
VFMO vs USMV: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard U.S. Momentum Factor ETF and iShares MSCI USA Min Vol Factor ETF, side by side. Updated October 21, 2026.
VFMO vs USMV: key differences
The short answer, from the latest data on this page.
- Fees. VFMO is cheaper at 0.13% a year versus 0.15% for USMV. On $10,000 that is $2 a year less in fees.
- Income. USMV pays more income, yielding 1.38% over the last twelve months versus 0.61% for VFMO. That is about $76 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, VFMO returned 70.5% versus 42.3% for USMV, with dividends reinvested. $10,000 would have grown to $17,048 in VFMO and $14,229 in USMV.
- Risk. VFMO has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -25.8%, against -17.9% for USMV.
- Diversification. VFMO holds 638 positions and USMV holds 174. The ten largest positions make up 10.9% of VFMO and 15.1% of USMV.
- Overlap. At least 9% of the two portfolios overlap by weight, across 19 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. VFMO grew its yearly payout 10.0% a year over the last 4 years, versus 8.2% for USMV.
- Size. USMV is the larger fund with $24.0 billion in assets, against $1.9 billion for VFMO.
Bottom line: VFMO fits better if you care most about stronger 5-year returns, faster dividend growth and broader diversification. USMV fits better if you care most about more income today and smaller drawdowns.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VFMO Vanguard U.S. Momentum Factor ETF | USMV iShares MSCI USA Min Vol Factor ETF |
|---|---|---|
| Dividend yield (TTM) | 0.61% | 1.38% |
| Dividend / share (TTM) | $1.36 | $1.41 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.3074 on Sep 25, 2026 | $0.3282 on Sep 18, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 15, 2026 |
| Dividend growth (CAGR) | 10.0% over 4 yrs | 8.2% over 4 yrs |
| Price | $220.63 | $102.32 |
| Dividend growth streak | 2 years | — |
| Beta | 1.32 | 0.48 |
| Max drawdown (5Y) | -25.8% | -17.9% |
| Market cap | $1.90B | $23.79B |
| Exchange | CBOE | CBOE |
| Expense ratio | 0.13% | 0.15% |
| Assets under management | $1.90B | $24.00B |
| Number of holdings | 638 | 174 |
| Top 10 concentration | 10.9% | 15.1% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VFMO
$5.12/mo
$61 /yr at 0.61% yield
USMV
$11.49/mo
$138 /yr at 1.38% yield
Dividend history
Total dividends paid per share in each calendar year. VFMO pays quarterly; USMV pays quarterly.
| Year | VFMO | USMV |
|---|---|---|
| 2025 | $1.5700 | $1.4021 |
| 2024 | $1.1884 | $1.4869 |
| 2023 | $1.1663 | $1.4177 |
| 2022 | $1.9669 | $1.1700 |
| 2021 | $1.0724 | $1.0230 |
Strategy: Factor and momentum
Rules-based funds that tilt toward a single trait linked to long-run returns, such as momentum, quality or low volatility. Momentum funds rebalance into recent winners, quality funds favor high profitability and strong balance sheets, and low-volatility funds pick the steadiest stocks. The same label can hide very different rules, so the index methodology matters more than the name.
Factor tilts go through long dry spells, and momentum funds can turn over quickly and get caught out when market leadership changes.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $17,048 in VFMO and $14,229 in USMV.
| Period | VFMO | USMV |
|---|---|---|
| 1 month | -2.94% | 3.99% |
| 3 months | -3.25% | 5.92% |
| Year to date | 15.36% | 8.67% |
| 1 year | 12.45% | 8.14% |
| 3 years | 107.63% | 47.54% |
| 5 years | 70.48% | 42.29% |
- VFMO
- USMV
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VFMO
- USMV
VFMO vs USMV holdings overlap
At least 9% overlap by weight, with 19 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VFMO weight | USMV weight |
|---|---|---|
| AMDAdvanced Micro Devices Inc | 1.15% | 0.76% |
| JNJJohnson & Johnson | 0.71% | 1.39% |
| BNYBank of New York Mellon Corp/The | 0.69% | 0.89% |
| MUMicron Technology Inc | 1.21% | 0.69% |
| APHAmphenol Corp | 0.67% | 1.54% |
| CORCencora Inc | 0.63% | 1.33% |
| MRKMerck & Co Inc | 0.62% | 1.41% |
| GEVGE Vernova Inc | 0.84% | 0.57% |
| XOMExxon Mobil Corp | 0.52% | 1.56% |
| AMATApplied Materials Inc | 1.22% | 0.51% |
Top 10 holdings
Largest positions by portfolio weight.
VFMO638 holdings total
Quick verdict
VFMO fits better if you care most about stronger 5-year returns, faster dividend growth and broader diversification. USMV fits better if you care most about more income today and smaller drawdowns. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VFMO or USMV better for dividend income?
It depends on your goals. VFMO currently yields 0.61% Trailing Twelve Months (TTM) while USMV yields 1.38%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VFMO and USMV?
Vanguard U.S. Momentum Factor ETF (VFMO) is an ETF listed on CBOE. iShares MSCI USA Min Vol Factor ETF (USMV) is an ETF listed on CBOE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VFMO or USMV?
VFMO has the lower expense ratio. VFMO charges 0.13% a year and USMV charges 0.15%, a difference of $2 a year on a $10,000 investment.
Which has performed better, VFMO or USMV?
Over the last 5 years, VFMO has the higher total return with dividends reinvested: VFMO returned 70.5% and USMV returned 42.3%. Past performance does not predict future returns.
Which is riskier, VFMO or USMV?
Measured by the worst peak-to-trough decline over the last five years, VFMO has been riskier: VFMO fell as much as 25.8% and USMV as much as 17.9%. Their betas are 1.32 and 0.48.
How much do VFMO and USMV overlap?
At least 9% of the two portfolios overlap by weight, across 19 shared holdings. The largest shared positions are AMD, JNJ, BNY. Holding both still adds meaningful diversification.
How often do VFMO and USMV pay dividends?
Both pay quarterly. The most recent payments were $0.3074 for VFMO and $0.3282 for USMV.
How much income does $10,000 in VFMO vs USMV generate?
At current TTM yields, $10,000 in VFMO would generate roughly $5.12 per month ($61 annually). The same amount in USMV would produce about $11.49 per month ($138 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VFMO and USMV?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VFMO vs USMV with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VFMO and USMV fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.