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VFQY - ETF AI Analysis

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VFQY

Vanguard U.S. Quality Factor ETF (VFQY)

Rating:73Outperform
Price Target:
VFQY, the Vanguard U.S. Quality Factor ETF, earns a solid overall rating thanks to high-quality leaders like Adobe, Apple, Qualcomm, and PepsiCo, which all show strong financial performance, healthy profitability, and strategic positioning in areas like AI, services, and innovation. These strengths are slightly offset by holdings such as Fortinet, Costco, and Trane Technologies, where bearish technical trends, high valuations, or macro uncertainties introduce some risk. The main risk factor is that many top holdings are priced at premium valuations, which could make the fund more sensitive to market pullbacks.
Positive Factors
Strong Recent Top Holdings Performance
Several of the largest positions, such as KLA, Lam Research, Costco, and PepsiCo, have shown strong gains this year, helping support the ETF’s overall results.
Broad Sector Diversification
The fund spreads its investments across many sectors, including technology, financials, industrials, consumer stocks, and health care, which helps reduce the impact if one area of the market struggles.
Low Expense Ratio
The ETF charges a relatively low fee, so less of your potential return is lost to ongoing costs.
Negative Factors
Heavy U.S. Concentration
Almost all of the ETF’s holdings are in U.S. companies, offering very little geographic diversification outside the United States.
Tech Sector Dependence
A large portion of the fund is invested in technology stocks, which can make the ETF more sensitive to swings in that sector.
Several Weak Top Holdings
Some major positions like Adobe, Apple, Qualcomm, and Autodesk have shown weak performance this year, which can drag on the fund’s returns if the trend continues.

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

VFQY Summary

Vanguard U.S. Quality Factor ETF (VFQY) invests in U.S. companies that score well on “quality” measures, such as steady profits and lower debt, rather than tracking a traditional index. It focuses on the broad U.S. stock market and holds many sectors, with a tilt toward technology, financials, and industrials. Well-known holdings include Apple, Adobe, Costco, and PepsiCo. Someone might invest in VFQY to seek long-term growth from strong, financially healthy companies while staying diversified across many industries. A key risk is that it still owns stocks, so its price can rise and fall with the overall stock market.
How much will it cost me?The Vanguard U.S. Quality Factor ETF (VFQY) 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 average because it is passively managed, focusing on tracking a specific strategy rather than actively picking stocks.
What would affect this ETF?The Vanguard U.S. Quality Factor ETF (VFQY) could benefit from positive trends in the U.S. economy, such as stable earnings growth in sectors like technology and healthcare, which are heavily represented in its holdings. However, it may face challenges from rising interest rates or economic slowdowns, which could negatively impact consumer spending and financial sector performance. Regulatory changes or geopolitical tensions affecting U.S. companies could also influence the ETF's future performance.

VFQY Top 10 Holdings

VFQY is leaning heavily on U.S. tech and industrial standouts, with chip names like Qualcomm and Lam Research doing much of the heavy lifting as they ride the AI and semiconductor tailwind. Fortinet is another bright spot, keeping the fund’s tech engine humming even as software names like Adobe and Autodesk show more mixed, sometimes lagging, momentum. Apple and Costco are steady anchors rather than rockets, helping smooth the ride. Overall, this is a U.S.-only, quality-focused fund with a clear tilt toward technology and industrial strength.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Qualcomm2.30%$10.43M$251.02B67.41%
80
Outperform
Fortinet2.28%$10.33M$98.12B27.90%
71
Outperform
Lam Research2.14%$9.69M$381.86B284.42%
77
Outperform
KLA1.95%$8.85M$246.67B154.91%
77
Outperform
Apple1.73%$7.84M$4.54T54.00%
79
Outperform
Adobe1.63%$7.40M$98.93B-41.78%
80
Outperform
Costco1.50%$6.79M$456.18B-1.46%
72
Outperform
Autodesk1.45%$6.57M$50.88B-20.68%
74
Outperform
Trane Technologies1.41%$6.37M$99.70B5.77%
70
Outperform
PepsiCo1.36%$6.16M$205.79B10.89%
78
Outperform

VFQY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
155.78
Positive
100DMA
156.14
Positive
200DMA
153.10
Positive
Market Momentum
MACD
1.44
Negative
RSI
66.04
Neutral
STOCH
88.26
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VFQY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 160.15, equal to the 50-day MA of 155.78, and equal to the 200-day MA of 153.10, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VFQY.

VFQY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$458.68M0.13%
73
Outperform
$916.41M0.59%
69
Neutral
$852.89M1.30%
67
Neutral
$778.34M0.45%
74
Outperform
$763.05M0.22%
63
Neutral
$696.67M0.50%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFQY
Vanguard U.S. Quality Factor ETF
163.43
26.38
19.25%
SYLD
Cambria Shareholder Yield ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
BGDV
Bahl & Gaynor Dividend ETF
AVTM
Avantis Total Equity Markets ETF
XCHG
AB US 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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