Vanguard U.S. Momentum Factor ETF (VFMO)
The Best ETF for the Investor Who Wants to Beat the Market While Barely Lifting a Finger
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VFMO Is Outshining Broader Indices By More Than 100%, But Still Lagging In Peers
Vanguard US Momentum Factor ETF is upgraded to buy, poised for its highest annual return in 2026 amid strong multi-cap momentum. VFMO's diversified exposure across large, mid, and small caps, combined with a quantitative momentum strategy, supports robust performance and downside mitigation. VFMO trades at lower valuations (25x earnings, 3.8x book) versus benchmarks, with a low 0.13% expense ratio and strong liquidity.
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VFMO: Leading Among Momentum ETFs, Most Signs Are Bullish
Vanguard US Momentum Factor ETF continues to outperform peers and the S&P 500, delivering a 13% YTD return. I reiterate a "Buy" rating on VFMO, citing attractive valuation (P/E < 20x, PEG 1.36x), robust momentum, and strong technicals. VFMO offers diversified exposure across market caps and sectors, with a modified equal-weight approach limiting concentration risk.
The Smartest Vanguard ETF to Buy With $1,000 Right Now
The Vanguard U.S. Momentum Factor ETF is actively managed. It looks for the best performing stocks over recent time periods.
VFMO: Reasonably Valued And Very Diversified Momentum ETF
Vanguard U.S. Momentum Factor ETF offers broad diversification across 627 companies of all sizes, emphasizing technology and maintaining low company-specific risk. VFMO has greatly outperformed a mid-cap benchmark and the S&P 500 over the past year, but its long-term performance is average among momentum peers. VFMO stands out for its low top-10 concentration and reasonable valuation relative to the S&P 500.
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VFMO: An Useful Complement To The Russell 3000
Vanguard U.S. Momentum Factor ETF offers active momentum exposure and is best used as a complement to a core Russell 3000 ETF, like IWV. VFMO provides diversification benefits through lower tech concentration, higher exposure to Industrials and small/mid-caps, and a distinct sector allocation versus IWV. Despite similar long-term returns and lower Sharpe ratios, VFMO's active management reduces drawdown risk and correlation during market stress, enhancing risk-adjusted performance.
VFMO: Outperforming Other Momentum Strategies After The April Decline
Vanguard U.S. Momentum Factor ETF continues to outperform peers, with strong returns and a diversified portfolio across market caps and sectors. VFMO maintains a buy rating, supported by positive technical signals, robust momentum, and a favorable seasonal period ahead. Despite a recent market drop, VFMO shows resilience, reasonable valuation, and attractive long-term growth prospects with limited single-stock risk.
VFMO: Momentum Investing Is Flourishing, But Consider SPMO Or MTUM
Momentum investing is well-positioned for strong returns as the S&P 500 uptrend continues, supported by earnings growth and expected rate cuts. Vanguard U.S. Momentum Factor ETF is too diversified, limiting its upside and underperforming both the S&P 500 and peer momentum ETFs. SPMO and MTUM are better momentum ETF options, with higher concentration in mega-cap growth stocks and superior recent performance and risk profiles.
VFMO: Sticking With The Vanguard Momentum Strategy Amid Sector Rotation
The Vanguard U.S. Momentum Factor ETF has experienced recent volatility, but remains a buy due to its valuation and emerging relative strength. VFMO's assets under management have grown significantly, and it offers a low expense ratio and attractive PEG ratio despite recent performance issues. The ETF has a diversified portfolio with significant exposure to mid- and small-cap stocks, and a shift towards value stocks is expected.
After Beating the S&P 500 in 2024, This Vanguard Growth ETF Is Already Up Over 6% in 2025
The Vanguard U.S. Momentum Factor ETF (VFMO -2.90%) narrowly beat the S&P 500 in 2024. But it is already up 6.3% year to date as of Jan. 26, outperforming the S&P 500's 3.7% gain.
VFMO: Diversification A Negative For Vanguard's Momentum ETF
VFMO is Vanguard's U.S. Momentum Factor ETF and offers investors diversified exposure to small, mid, and large-cap stocks with strong short- and long-term momentum features. Diversification is often seen as a positive selling point, but in this case, it's hindered returns since its February 13, 2018, launch date. VFMO lagged behind large-cap momentum stocks, represented by SPMO, by 1.28% per year from March 2018 to December 2023 and then underperformed by a massive 28% in 2024.
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VFMO: Strong Diversification, Solid Returns With This Momentum ETF
I have a buy rating on VFMO due to its solid diversification, high relative strength, and impressive technicals, indicating more upside potential. VFMO's modified equal-weighted portfolio offers a unique approach compared to MTUM and SPMO, making it a standout mid-cap ETF with strong performance. The ETF's diverse sector allocation, solid valuation metrics, and bullish seasonal trends make it a compelling investment choice.
VFMO: A Diversified Momentum ETF At Modest Valuation
Vanguard U.S. Momentum Factor ETF offers well-diversified allocations with modest valuations, making it attractive in a stretched valuation environment. VFMO's top holdings are mostly in the technology sector, but the fund maintains a diversified investment profile compared to the Russell 3000 index. VFMO's performance has been on par with benchmarks over 3-5 years, but has outperformed in the short term, despite modest exposure to mega caps.
VFMO: Inexpensive ETF Outperforming The S&P 500 And Peer Funds
Vanguard's U.S. Momentum Factor ETF has the ability to outperform the S&P 500 Index and peer momentum funds due to its quantitative holdings selection method. VFMO has a low expense ratio and strong performance with broad diversification of market caps and sectors. VFMO's selection methodology has achieved momentum greater than its peers despite a lower turnover rate in holdings.
This Is the Perfect Vanguard ETF for Investors With a Fear of Missing Out on the Market's Biggest Winners
This Vanguard ETF provides a cure for the fear of missing out. It owns 594 stocks with strong momentum, including leaders such as Meta, Nvidia, Broadcom, and Eli Lilly.
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VFMO: Assessing Momentum As A Strategy Versus SPY Near All-Time Highs
The Vanguard U.S. Momentum Factor ETF is an actively managed ETF that targets U.S. large and mid-cap stocks with strong recent price performance. VFMO is underweight tech compared to the broader market, but has outperformed recently, indicating potential positive momentum and further gains. Despite the potential, added volatility might not be worth it in the current market regime.