Vanguard ETFs VFMO, VFMF Beat S&P 500 Over 5 Years With 90.8% and 94.4% Returns
Updated
Updated · The Motley Fool · Jul 10
Vanguard ETFs VFMO, VFMF Beat S&P 500 Over 5 Years With 90.8% and 94.4% Returns
3 articles · Updated · The Motley Fool · Jul 10
Summary
VFMO returned 90.8% and VFMF 94.4% over five years, topping the Vanguard S&P 500 ETF's 84.1%; both also led year to date with gains of 22.6% and 17.9% versus 9.9%.
Both funds use momentum screens based on six- and 11-month returns, with stronger-scoring stocks getting heavier weights rather than relying on market-cap concentration.
Their portfolios look markedly different from the S&P 500: VFMO holds more than 700 stocks, VFMF mixes momentum with quality, value and low volatility, and both spread exposure across mid-, small- and large-cap names.
That diversification leaves them far less dependent on mega-cap tech than the S&P 500, where technology makes up 39% and top holdings include Nvidia at 7.9% and Apple at 7.1%.
The results suggest Vanguard's lesser-known factor lineup has delivered sustained excess returns despite higher fees than VOO—0.13% for VFMO and 0.18% for VFMF versus 0.03%.