At a glance
VFMO charges 0.13% a year, below the 0.22% average of the 8 funds most like it (the 4th cheapest of 9). It has $1.92B in assets, the 5th largest of that group; it paid 0.61% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.8% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +29.1% a year. At its worst it fell 21.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low. Its ten largest positions make up 8.8% of the fund, out of 695 in all.
The short version
Vanguard U.S. Momentum Factor ETF (VFMO) is an actively managed fund. It uses a quantitative model to buy U.S. stocks of all sizes that have had strong recent price gains. As of August 31, 2026, it held 695 stocks, and none made up more than about 1% of assets. Its 0.13% expense ratio is below the 0.22% average of similar funds. It trades heavily and has swung more than the broad market.
Price history
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VFMO +12.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VFMO official prospectus, to Dec 31, 2025 | — | +17.55% | — | +12.33% | — | +13.71% |
| VFMO price data to Oct 27, 2026 | +16.8% | +12.8% | +29.1% | +11.8% | — | +17.6% |
- Over the year to Oct 27, 2026, VFMO returned +12.8%, 5th of 9 among similar funds.
- Its 5-year annualized return was +11.8%.
- Its worst full calendar year was 2022 (-12.8%); its best was 2024 (+26.1%).
- The deepest fall in its price history was 25.8% (Nov 8, 2021 to Sep 26, 2022), recovered by Feb 2, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +16.8% | — |
| 2025 | +17.4% | +17.55% |
| 2024 | +26.1% | +25.96% |
| 2023 | +16.3% | +16.33% |
| 2022 | -12.8% | -12.84% |
| 2021 | +19.2% | +19.14% |
| 2020 | — | +31.30% |
| 2019 | — | +27.75% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.3% over that stretch · deepest drop along the way 21.5%, back to its old high 14.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0100 | |
| 2025 | $1.5700 | +31.9% |
| 2024 | $1.1900 | +2.6% |
| 2023 | $1.1600 | -41.1% |
| 2022 | $1.9700 | +82.4% |
| 2021 | $1.0800 |
What's inside
As of Aug 31, 2026, the fund held 695 securities; the ten largest made up 8.84% of assets.
| Holding | Weight | |
|---|---|---|
| Sandisk Corp | 1.04% | |
| Marathon Petroleum Corp | 0.98% | |
| Valero Energy Corp | 0.96% | |
| Micron Technology Inc | 0.91% | |
| Phillips 66 | 0.89% | |
| Fortinet Inc | 0.88% | |
| Advanced Micro Devices Inc | 0.83% | |
| Dell Technologies Inc | 0.80% | |
| Applied Materials Inc | 0.79% | |
| Western Digital Corp | 0.75% | |
| Johnson & Johnson | 0.74% | |
| Lam Research Corp | 0.73% | |
| Merck & Co Inc | 0.73% | |
| KLA Corp | 0.72% | |
| Bank of New York Mellon Corp | 0.72% |
By country
United States 99.78%By asset type
Stocks 99.78%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $135.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.29%, -10.36%, +1.54%.
How it works
Vanguard U.S. Momentum Factor ETF does not track an index. It is actively managed, but the advisor relies on a quantitative model, a set of data-driven rules, rather than case-by-case stock picking. The model scores U.S. large-, mid- and small-company stocks and favors those with strong past performance, which may be measured over different time periods. The bet is on momentum: the idea that stocks that have outpaced others tend to keep doing so for a while, a pattern that can break down.
A rules-based screen spreads the portfolio across many sectors and limits exposure to less liquid stocks, meaning shares that trade thinly. Under normal conditions, at least 80% of net assets go into securities of U.S. companies. As of August 31, 2026, the fund held 695 holdings, and the 10 largest made up only 8.84% of assets. Sandisk, Marathon Petroleum and Valero Energy led at about 1% each.
Momentum leaders change, so the holdings do too. The prospectus filed March 27, 2026 lists portfolio turnover of 100%, roughly equal to replacing the entire portfolio over a year. Trading costs from that turnover are not included in the 0.13% expense ratio. ETF shares trade on Cboe BZX Exchange at market prices, which can differ from net asset value (NAV), the per-share value of the holdings.
What it really costs
- VFMO charges 0.13% a year, versus an average of 0.22% for the similar funds below (4th of 9, cheapest first).
- Of that, 0.11% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $13 in the first year and $166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VFMO | $13 | $42 | $73 | $166 |
In a retirement portfolio
Its momentum focus, 100% turnover and one-year beta of 1.53 make it a higher-risk addition alongside a broad core fund, not a foundation.
VFMO could add a tilt toward stocks with rising prices for 0.13% a year. In the SEC's standard example, that comes to $166 over 10 years on a $10,000 investment. The fund launched in 2018, so it has no record from 2008. It lost 21.44% in the first quarter of 2020. In the 2022 bear market it fell 21.5% and took 14.8 months to recover, reaching its old high on December 19, 2023. Its deepest drop was 25.8%, from November 2021 to September 2022, and it didn't recover until February 2, 2024. Its worst calendar year was 2022, at -12.84%. Someone who had to sell shares during a stretch like that would lock in losses. Income is small: the yield was 0.61% as of October 27, 2026, paid quarterly. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a low-cost momentum tilt: a 0.13% expense ratio versus a 0.22% average among similar funds.
- People who can live with sharp drops, like the 25.8% fall from November 2021 to September 2022, which took 16.2 months to recover.
- Investors who want exposure to large, mid and small U.S. stocks across 695 holdings, with no single position above about 1%.
Look elsewhere if
- Retirees who need steady income from their investments; the yield was only 0.61% as of October 27, 2026.
- Investors who want a stable portfolio; with 100% turnover, the holdings and sector mix can change a lot within a year.
- Those who prefer a fund tied to a published index; VFMO is actively managed using the advisor's own quantitative model.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VFMO this fund | — | 0.13% | $1.92B | +12.8% | +29.1% |
| VFMF Vanguard U.S. Multifactor ETF | 34% | 0.18% | $976.2M | +30.9% | +26.5% |
| FAD First Trust Multi Cap Growth AlphaDEX Fund | 34% | 0.62% | $577.4M | +8.6% | +25.1% |
| JMOM JPMorgan U.S. Momentum Factor ETF | 33% | 0.12% | $2.50B | +18.7% | +28.7% |
| ONEO SPDR Russell 1000 Momentum Focus ETF | 25% | 0.2% | $29.0M | +20.3% | +21.9% |
| CFA VictoryShares US 500 Volatility Wtd ETF | 25% | 0.35% | $533.5M | +11.2% | +17.3% |
| DFAC Dimensional U.S. Core Equity 2 ETF | 23% | 0.17% | $47.89B | +15.9% | +21.1% |
| SPTM SPDR Portfolio S&P 1500 Composite Stock Mar… | 22% | 0.03% | $13.58B | +11.9% | +21.5% |
Questions investors ask
Is VFMO good for retirement?
VFMO may fit as a small, higher-risk part of a retirement portfolio rather than its core. It costs 0.13% a year, but it swings more than the market. Its one-year beta was 1.53 as of October 27, 2026, meaning it has moved about one and a half times as much as the market. It fell 25.8% from November 2021 to September 2022 and took 16.2 months to recover. Its 0.61% yield provides little income.
What's the difference between VFMO and JMOM?
Both are U.S. momentum ETFs, and about 33% of their holdings overlap, based on the latest N-PORT reports. JMOM charges 0.12% a year; VFMO charges 0.13%. As of October 27, 2026, JMOM returned 18.7% over one year versus VFMO's 12.8%. Over three years, VFMO was slightly ahead, at 29.1% a year versus 28.7%. JMOM had $2.50 billion in net assets as of July 31, 2026. VFMO had $1.92 billion across all share classes as of August 31, 2026.
Does VFMO pay dividends?
Yes. VFMO pays dividends quarterly, but they are small. In the 12 months to October 27, 2026, it paid $1.36 per share, a yield of 0.61%. The fund picks stocks for strong recent performance, not for their payouts, so it aims at growth rather than income. Investors who rely on their portfolio for income would likely need other holdings to provide it.
What is VFMO's 5-year return?
According to its prospectus, VFMO returned an average of 12.33% a year over the five years ended December 31, 2025. Since its launch on February 13, 2018, it returned 13.71% a year. Based on market prices, its five-year annualized return was 11.8% as of October 27, 2026. The ride has been bumpy: it gained 31.3% in 2020 and lost 12.84% in 2022.
What stocks are in VFMO?
VFMO held 695 U.S. stocks as of August 31, 2026. The money is spread so widely that the 10 largest positions made up only 8.84% of assets. The largest were Sandisk, Marathon Petroleum, Valero Energy, Micron Technology and Phillips 66, each close to 1%. Fortinet, Advanced Micro Devices, Dell Technologies, Applied Materials and Western Digital completed the top 10. With 100% turnover, this list can change quickly.