Don't Miss This Actively Managed Vanguard ETF That Could Supercharge Your Returns
Vanguard U.S. Momentum Factor ETF Overview: The Vanguard U.S. Momentum Factor ETF (VFMO) offers a unique investment strategy focusing on mid-cap companies with strong growth potential, trading at attractive valuations compared to its benchmark, the Russell 3000. Its low expense ratio of 0.13% makes it appealing for investors seeking active management without high costs.
Investment Considerations: While VFMO provides diversification and momentum exposure, it has underperformed the S&P 500 since its inception and features a high turnover rate that may lead to tax implications, suggesting it is best suited for tax-advantaged accounts.
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Analyst Views on VFMO

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Vanguard's New ETFs: Vanguard is set to launch three new actively managed equity exchange-traded funds (ETFs).
Industry Response: This initiative reflects a broader trend in the asset management industry, which is increasingly focusing on active ETFs.
Customer Demand: The decision to expand into active ETFs is driven by rising customer demand for these investment products.
Mutual Fund Outflows: The move also aims to address outflows from traditional active mutual funds.
ETF Performance and Analyst Targets: The Vanguard U.S. Momentum Factor ETF (VFMO) has an implied analyst target price of $195.46, indicating a potential upside of 17.11% from its recent trading price of $166.90. Notable underlying holdings with significant upside include NextNav Inc, Weave Communications Inc, and Vital Farms Inc.
Investor Considerations: The article raises questions about the validity of analysts' target prices, suggesting that high targets may reflect optimism but could also lead to downgrades if they are based on outdated information. Further research is encouraged for investors to assess these targets.

Vanguard U.S. Momentum Factor ETF Overview: The Vanguard U.S. Momentum Factor ETF (VFMO) offers a unique investment strategy focusing on mid-cap companies with strong growth potential, trading at attractive valuations compared to its benchmark, the Russell 3000. Its low expense ratio of 0.13% makes it appealing for investors seeking active management without high costs.
Investment Considerations: While VFMO provides diversification and momentum exposure, it has underperformed the S&P 500 since its inception and features a high turnover rate that may lead to tax implications, suggesting it is best suited for tax-advantaged accounts.







