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Is WisdomTree U.S. Multifactor ETF (USMF) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the WisdomTree U.S. Multifactor ETF (USMF - Free Report) is a smart beta exchange traded fund launched on 06/29/2017.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $353.65 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. USMF is managed by Wisdomtree. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Multifactor Index.
The WisdomTree U.S. Multifactor Index is comprised of 200 U.S. companies with the highest composite scores based on two fundamental factors, value and quality measures, and two technical factors, momentum and correlation.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.28%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.35%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 34.7% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Telecom round out the top three.
When you look at individual holdings, Verisign Inc (VRSN) accounts for about 1.81% of the fund's total assets, followed by Motorola Inc (MOT) and Teledyne Technologies Inc (TDY).
USMF's top 10 holdings account for about 13.25% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Multifactor ETF has gained about 1.44% so far, and was up about 3.69% over the last 12 months (as of 05/13/2026). USMF has traded between $48.60 $52.45 in this past 52-week period.
The ETF has a beta of 0.77 and standard deviation of 12.24% for the trailing three-year period. With about 202 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market Index Fund ETF Shares (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $90.91 billion in assets, Vanguard Total Stock Market Index Fund ETF Shares has $639.38 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree U.S. Multifactor ETF (USMF) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the WisdomTree U.S. Multifactor ETF (USMF - Free Report) is a smart beta exchange traded fund launched on 06/29/2017.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $353.65 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. USMF is managed by Wisdomtree. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Multifactor Index.
The WisdomTree U.S. Multifactor Index is comprised of 200 U.S. companies with the highest composite scores based on two fundamental factors, value and quality measures, and two technical factors, momentum and correlation.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.28%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.35%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 34.7% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Telecom round out the top three.
When you look at individual holdings, Verisign Inc (VRSN) accounts for about 1.81% of the fund's total assets, followed by Motorola Inc (MOT) and Teledyne Technologies Inc (TDY).
USMF's top 10 holdings account for about 13.25% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Multifactor ETF has gained about 1.44% so far, and was up about 3.69% over the last 12 months (as of 05/13/2026). USMF has traded between $48.60 $52.45 in this past 52-week period.
The ETF has a beta of 0.77 and standard deviation of 12.24% for the trailing three-year period. With about 202 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market Index Fund ETF Shares (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $90.91 billion in assets, Vanguard Total Stock Market Index Fund ETF Shares has $639.38 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.