Key Points
Vanguard leads the ETF industry with low costs and indexing expertise. It now manages the largest U.S. ETF assets, including five of the ten biggest funds, with the S&P 500 ETF topping the list at over $1 trillion. Among its offerings, the Vanguard U.S. Multifactor ETF (VFMF) is frequently overlooked but has demonstrated impressive performance.
The fund uses a quantitative approach that first removes highly volatile stocks. From the remaining universe, it selects stocks based on momentum, quality, and value factors, creating an equally‑weighted, broadly diversified portfolio across market caps and sectors.
Current holdings number around 650, with the top three being Micron Technology, Dell Technologies, and Valero Energy.
Performance highlights include a year‑to‑date gain of roughly 22 %, placing it as the fourth‑best Vanguard ETF this year. Over the past 12 months it has returned about 28 %, ranking fifth in the Vanguard family. On a five‑year basis, the fund posted an annualized return of 14.3 %, the third‑best among Vanguard ETFs and the best among broad‑market offerings (it launched in 2018, so it lacks a decade‑long track record).
With about $976 million in assets, the ETF focuses on low‑priced, high‑momentum stocks that also exhibit strong fundamentals. This construction is positioned to navigate volatile, overvalued markets and potential corrections.
Image source: Getty Images.
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