ETF Evaluator:
Vanguard US Momentum Factor ETF (VFMO)
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(as of Aug 12)
Best Performing in Mid-Cap Blend Over the Last Year
| 58.8% | Castellan Targeted Equity ETF (CTEF) |
| 53.8% | Invesco S&P Spin-Off ETF (CSD) |
| 43.0% | Counterpoint Quantitative Equity ETF (CPAI) |
| 40.8% | Optimize Strategy Index ETF (OPTZ) |
| 37.3% | Tema U.S. Manufacturing & Reshoring ETF (WELD) |
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ETF Details
Vanguard US Momentum Factor ETF Overview
Vanguard US Momentum Factor ETF (VFMO) is an actively managed U.S. Equity Mid-Cap Blend exchange-traded fund (ETF). Vanguard launched the ETF in 2018.
The investment seeks to provide long-term capital appreciation by investing in stocks with strong recent performance as determined by the advisor.
The fund invests primarily in U.S. common stocks with the potential to generate higher returns relative to the broad U.S. equity market by investing in stocks with strong recent performance as determined by the advisor. The portfolio will include a diverse mix of companies representing many different market sectors and industry groups. Under normal circumstances, at least 80% of the fund's assets will be invested in securities issued by U.S. companies.
About Vanguard US Momentum Factor ETF (VFMO)
There are 1 members of the management team with an average tenure of 3.34 years: Scott Rodemer (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: Russell 3000 TR USD index with a weighting of 100%. Vanguard US Momentum Factor ETF has 673 securities in its portfolio. The top 10 holdings constitute 10.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard US Momentum Factor ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Vanguard US Momentum Factor ETF has 2.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.1% There is 2.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard US Momentum Factor ETF has 1.3% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $4 billion average for the Mid-Cap Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VFMO Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard US Momentum Factor ETF expense ratio is low compared to funds in the Mid-Cap Blend category. Vanguard US Momentum Factor ETF has an expense ratio of 0.13%, which is 71% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard US Momentum Factor ETF has a portfolio turnover rate of 100%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 84% for the Mid-Cap Blend category.
Recently, in the month of July 2026, Vanguard US Momentum Factor ETF returned -10.4%, which earned it a grade of F, as the Mid-Cap Blend category had an average return of -1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard US Momentum Factor ETF has a trailing yield of 0.63%, which is below the 0.85% category average.
The fund normally distributes its income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard US Momentum Factor ETF Grades
Year to date, the ETF has returned 17.3%, 3.3 percentage points better than the category, which translates into a grade of B. The fund has returned 28.8% over the past year (grade of A), 22.3% over the past three years (grade of A) and 12.8% per year over the past five years (grade of A).
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VFMO Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VFMO Return (NAV) | -10.4% | 0.1% | 28.8% | 22.3% | 12.8% | na |
| VFMO Return (Price) | -10.3% | 0.1% | 28.9% | 22.3% | 12.8% | na |
| NAV +/- Price Return | -0.022% | 0.005% | -0.020% | -0.045% | -0.021% | na |
| Mid-Cap Blend Avg | -1.6% | 4.4% | 20.8% | 14.8% | 8.8% | 11.6% |
| VFMO Grade (NAV) | F | F | A | A | A | na |
| +/- Category (NAV) | -8.8% | -4.2% | 8.1% | 7.5% | 4.0% | na |
| VFMO Tax-Cost Ratio | na | na | 0.2% | 0.2% | 0.3% | na |
VFMO Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VFMO Return (NAV) | 17.3% | 17.5% | 26.0% | 16.3% | -12.8% | 19.1% | 31.3% | 27.7% | na | na | na |
| VFMO Return (Price) | 17.3% | 17.4% | 26.1% | 16.3% | -12.8% | 19.2% | 31.4% | 28.2% | na | na | na |
| NAV +/- Price Ret | 0.001% | -0.009% | 0.007% | -0.005% | -0.001% | 0.001% | 0.002% | 1.7% | na | na | na |
| Mid-Cap Blend Avg | 14.0% | 10.6% | 16.1% | 16.9% | -14.4% | 23.3% | 15.6% | 27.4% | -9.1% | 19.1% | 14.8% |
| VFMO Grade (NAV) | B | A | A | C | B | F | A | C | na | na | na |
| +/- Category | 3.3% | 6.9% | 9.8% | -0.6% | 1.6% | -4.2% | 15.7% | 0.4% | na | na | na |
| Risk Measures | |
| Beta: | 1.36 |
| R-Squared: | 74% |
| Standard Deviation: | 20.6% |
| Category Risk Index: | 1.31 |
| Category Risk Rating: | High |
| Total Risk Index: | 1.68 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 0.6% |
| Total Assets: | $ 1,831 Mil |
| Share Class Assets: | $ 1,831 Mil |
| Turnover: | 100.0% |
| Expense Ratio: | 0.13% |
| Index Fund: | No |
| Index Tracked: | Russell 3000 TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 3.3 years | |||
| Average Tenure: 3.3 years | |||
| Managers (Year): Rodemer Scott (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 673 |
| % in Top 10 Holdings: | 10.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.6% |
Portfolio Allocation |
|
| Domestic Stock: | 96.1% |
| Foreign Stock: | 2.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.3% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | February 13, 2018 |
Expenses and Fees
| Expense Ratio (%): | 0.13% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.45% |
