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VFMO - ETF AI Analysis

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VFMO

Vanguard U.S. Momentum Factor ETF (VFMO)

Rating:67Neutral
Price Target:
VFMO’s rating suggests it is a solid but not risk‑free momentum-focused ETF, driven largely by strong, growing companies with positive outlooks. Standout holdings like Alphabet, Johnson & Johnson, and Newmont Mining support the fund’s quality through robust financial performance, bullish trends, and strategic positioning in areas like AI, healthcare, and commodities. However, several holdings face valuation concerns and regulatory or regional risks, and the fund’s tilt toward momentum and technology-related names means performance can be more sensitive to market swings and sector-specific downturns.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum in its strategy.
Leading Momentum Stocks in Top Holdings
Several of the largest positions, including major technology and industrial names, have delivered strong year-to-date gains that support the fund’s results.
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 limited diversification across global markets.
Sector Tilts Toward Industrials and Health Care
Large weights in industrials and health care mean the fund could be more affected if these sectors weaken.
Momentum Strategy Can Be Volatile
Because the ETF focuses on stocks with strong recent performance, it may be more sensitive to sharp market reversals.

VFMO vs. SPDR S&P 500 ETF (SPY)

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 many sectors, including industrials, health care, and technology. Well-known holdings include Alphabet (Google’s parent company), Intel, and Johnson & Johnson. Investors might consider VFMO if they want growth potential and broad diversification across many industries. A key risk is that momentum stocks can fall quickly when trends reverse, so the fund’s value can move up and down sharply with market swings.
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’s story right now is all about U.S. momentum names clustered in tech and industrials, with a clear tilt toward semiconductor and AI infrastructure plays. Vertiv is blazing ahead as a key engine, helped by rising demand for data center power and cooling, while Applied Materials, Lam Research, and KLA are also pushing the fund higher as chip-related spending stays hot. Alphabet adds steady Big Tech support, and Intel’s rebound is giving the portfolio an extra boost. Johnson & Johnson, by contrast, looks more like a steady but slower-moving ballast than a real performance driver.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Intel1.05%$16.50M$414.43B314.38%
64
Neutral
GE Vernova Inc.1.05%$16.47M$308.81B202.72%
69
Neutral
KLA1.01%$15.86M$253.63B173.88%
77
Outperform
Alphabet Class A0.92%$14.47M$4.15T118.13%
85
Outperform
Vertiv Holdings0.92%$14.36M$124.24B274.26%
77
Outperform
Applied Materials0.89%$14.03M$330.97B168.49%
77
Outperform
Advanced Micro Devices0.88%$13.88M$567.05B247.16%
73
Outperform
Corning0.82%$12.91M$151.09B280.98%
74
Outperform
Caterpillar0.82%$12.81M$386.56B169.91%
76
Outperform
Johnson & Johnson0.81%$12.78M$547.64B45.05%
78
Outperform

VFMO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
207.39
Positive
100DMA
204.10
Positive
200DMA
194.80
Positive
Market Momentum
MACD
4.99
Negative
RSI
68.55
Neutral
STOCH
93.17
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VFMO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 217.56, equal to the 50-day MA of 207.39, and equal to the 200-day MA of 194.80, indicating a bullish trend. The MACD of 4.99 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 93.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VFMO.

VFMO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.59B0.13%
67
Neutral
$6.45B0.98%
67
Neutral
$4.12B0.50%
75
Outperform
$2.91B0.14%
73
Outperform
$2.54B0.34%
73
Outperform
$2.38B0.31%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFMO
Vanguard U.S. Momentum Factor ETF
223.87
68.81
44.38%
AKRE
Akre Focus ETF
QLTY
GMO U.S. Quality ETF
DCOR
Dimensional US Core Equity 1 ETF
TSPA
T. Rowe Price U.S. Equity Research ETF
APUE
ActivePassive U.S. Equity ETF
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.
DisclaimerThis 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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