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VFMO - ETF AI Analysis
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Vanguard U.S. Momentum Factor ETF (VFMO)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Holdings with Strong Momentum
Several of the largest positions, such as Lam Research, Micron, Intel, and KLA, have delivered strong year-to-date results, helping drive the fund’s returns.
Low Expense Ratio
The fund’s relatively low fee means more of the investment returns stay in investors’ pockets over time.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. stocks, the ETF offers very limited geographic diversification and is highly tied to the U.S. market.
Sector Concentration in a Few Areas
Large weights in health care, industrials, and technology mean the fund is more exposed if these sectors experience a downturn.
Momentum Strategy Can Be Volatile
Because the ETF focuses on momentum stocks, it may be more sensitive to sharp market swings and changes in investor sentiment.
VFMO vs. SPDR S&P 500 ETF (SPY)
AUM1.38B
RegionNorth America
Expense Ratio0.13%
Beta1.26
IssuerVanguard
Inception DateFeb 13, 2018
Dividend Yield0.79%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume38,296
30 Day Avg. Volume34,399
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
254.60Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering685
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VFMO Summary
Vanguard U.S. Momentum Factor ETF (VFMO) is a U.S. stock fund that focuses on companies whose share prices have been rising strongly, a theme known as “momentum.” It doesn’t track a traditional index, but instead follows a rules-based strategy across the broad U.S. market, with big weights in health care, industrials, and technology. Well-known holdings include Alphabet (Google’s parent company) and Intel. Investors might consider VFMO if they want growth potential and diversification across many sectors. A key risk is that momentum stocks can fall quickly when trends reverse, so the fund’s value can move up and down sharply.
How much will it cost me?The Vanguard U.S. Momentum Factor ETF (VFMO) has an expense ratio of 0.13%, which means you’ll pay $1.30 per year for every $1,000 invested. This is lower than the average for actively managed funds because Vanguard focuses on keeping costs low while still providing a momentum-driven investment strategy.
What would affect this ETF?The Vanguard U.S. Momentum Factor ETF (VFMO) could benefit from strong performance in sectors like Technology and Industrials, which are heavily weighted in the fund, especially if innovation and economic growth drive demand in these areas. However, it may face challenges during periods of market volatility or economic downturns, as momentum-focused strategies can be sensitive to sudden shifts in investor sentiment. Additionally, rising interest rates or regulatory changes affecting top holdings like Alphabet or Broadcom could negatively impact the ETF's performance.
VFMO Top 10 Holdings
VFMO is leaning hard into U.S. momentum names, with chipmakers and industrials setting the pace. Lam Research and Micron are powering ahead on AI-related demand, while KLA adds steady strength despite some valuation worries. On the industrial side, GE Vernova and Howmet Aerospace are climbing, giving the fund an extra lift from the energy and aerospace boom. Newmont Mining has been a quiet but positive contributor. The main sore spot is AMD, which has been losing steam lately and slightly dragging returns in an otherwise U.S.-focused, tech-and-industrials-heavy lineup.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Newmont Mining | 1.13% | $15.55M | $126.51B | 165.08% | 81 Outperform | |
| Lam Research | 1.10% | $15.21M | $248.92B | 152.28% | 77 Outperform | |
| GE Vernova Inc. | 1.07% | $14.78M | $212.72B | 172.81% | 69 Neutral | |
| KLA | 1.01% | $13.90M | $176.24B | 89.03% | 77 Outperform | |
| Johnson & Johnson | 1.00% | $13.78M | $579.34B | 44.22% | 78 Outperform | |
| Micron | 0.98% | $13.56M | $416.78B | 298.34% | 79 Outperform | |
| General Motors | 0.98% | $13.49M | $67.99B | 58.54% | 73 Outperform | |
| Howmet Aerospace | 0.95% | $13.16M | $100.29B | 101.07% | 67 Neutral | |
| Advanced Micro Devices | 0.95% | $13.14M | $313.74B | 91.84% | 73 Outperform | |
| Intel | 0.93% | $12.85M | $216.88B | 110.37% | 64 Neutral |
VFMO Technical Analysis
Negative
―
Price Trends
203.67
Negative
197.60
Negative
186.91
Positive
Market Momentum
-0.03
Positive
39.06
Neutral
30.46
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VFMO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 206.43, equal to the 50-day MA of 203.67, and equal to the 200-day MA of 186.91, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFMO.
VFMO Peer Comparison
Comparison Results
Performance Comparison
VFMO
Vanguard U.S. Momentum Factor ETF
197.58
51.51
35.26%
CGUS
Capital Group Core Equity ETF
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AKRE
Akre Focus ETF
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QLTY
GMO U.S. Quality ETF
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DCOR
Dimensional US Core Equity 1 ETF
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APUE
ActivePassive U.S. Equity ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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