Vanguard U.S. Minimum Volatility ETF

Vanguard U.S. Minimum Volatility ETF (VFMV) is an actively managed fund. It uses a computer model to pick U.S. large-, mid- and small-company stocks that together should swing less than the broad U.S. market. Its 0.13% expense ratio is below the 0.22% average of similar funds. Its one-year beta, a measure of how much it moves with the market, was 0.42 as of October 27, 2026, so it moved less than half as much.

• Over the year to Oct 27, 2026, VFMV returned +14.6%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +10.0%.
• Its worst full calendar year was 2022 (-5.7%); its best was 2021 (+20.7%).
• The deepest fall in its price history was 15.4% (Dec 29, 2021 to Sep 30, 2022), recovered by Dec 4, 2023.

As of May 31, 2026, the fund held 186 securities; the ten largest made up 15.72% of assets.

By sector

• Over the three months to May 31, 2026, investors added a net $32.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.39%, +5.38%, +0.45%.

VFMV does not track an index. Vanguard's advisor uses a quantitative model, meaning a rules-based computer screen, to review every stock in a universe of U.S. large-, mid- and small-company shares. It then builds the portfolio with the lowest expected volatility. Volatility is how sharply prices rise and fall. Rules keep the fund spread across sectors and limit stocks that trade thinly. At least 80% of net assets must be in U.S. companies.

The model looks at the whole portfolio, not just each stock alone. So it can hold chip and tech companies next to classic defensive names. As of May 31, 2026, the fund held 186 stocks, and the top 10 made up only 15.72%. The largest were QUALCOMM (1.77%), Cisco Systems (1.72%), Microsoft (1.64%), Apple (1.57%) and Texas Instruments (1.54%). Chevron, Johnson & Johnson and Verizon each held about 1.5%. Technology was the largest sector it could identify.

The prospectus gives no fixed rebalancing schedule. It reports portfolio turnover of 34%, a rough measure of how much of the fund is replaced each year. The fund uses no leverage, options or swaps. It held a tiny S&P 500 futures position (0.01%) and 0.15% in cash. Its shares trade on Cboe BZX at market prices, which can differ from the value of the holdings.

• VFMV charges 0.13% a year, versus an average of 0.22% for the similar funds below (5th of 9, cheapest first).
• Of that, 0.09% 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).

It keeps a retirement portfolio in stocks but aims for smaller swings than the broad U.S. market, with a one-year beta of 0.42 as of October 27, 2026.

VFMV launched in 2018, so it has no record from the 2008 crisis. It is not crash-proof. It lost 21.73% in the first quarter of 2020 but ended that year down just 0.17%. In the 2022 bear market, it fell 14.9% from January 3 to September 30, 2022. It took about 14 months from that low to recover, by December 2023. Its worst calendar year was 2022, at -5.72%. Smaller drops can mean selling fewer shares at low prices when you need cash in a bad year, but losses still happen.

The trailing 12-month yield was 1.55% as of October 27, 2026, paid quarterly. That is modest for anyone relying on income. In the SEC's standard example, $10,000 would cost $166 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.