Vanguard US Momentum Factor ETF

VFMO

시가총액 US$18.2억

The Vanguard U.S. Momentum Factor ETF has averaged a 29% annual return over the past three years. Here's why it is one of the best Vanguard ETFs for investors to consider owning over the long term.

Vanguard U.S. Momentum Factor ETF (VFMO) is downgraded from Buy to Hold due to lagging performance and late momentum capture. VFMO's diversified small- and mid-cap exposure is a distinct strength versus large-cap heavy peers, potentially positioning it for future outperformance. Recent top holdings like Sandisk, Valero, and Marathon Petroleum were added after substantial rallies, limiting upside if catalysts fade.

The Vanguard U.S. Momentum Factor ETF invests in stocks that are already going up. It encompasses around 700 of them.

Vanguard has long been well-known for its lineup of broad-based, ultra-low-cost index funds and ETFs. It has an underrated lineup too: The Vanguard U.S. Momentum Factor ETF and Vanguard U.S. Multifactor ETF.

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.

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 Vanguard U.S. Momentum Factor ETF is actively managed. It looks for the best performing stocks over recent time periods.

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.

The Vanguard S&P 500 ETF is a helpful starting point for investors. The Vanguard Growth ETF and Vanguard Value ETF provide better alignment for investment objectives.

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.