VFMO rises 17% year-to-date, surpassing the S&P 500’s 9.4% gain, driven by a momentum-based stock selection strategy.
The Vanguard U.S. Momentum Factor ETF (VFMO) has climbed 17% in 2026, extending its lead over the S&P 500, which is up 9.4%. The fund’s momentum-driven strategy targets stocks with sustained upward trends over the past 12 months, filtering for those rising on fundamentals rather than broader market movements.
Since its 2018 launch, VFMO has consistently outperformed the S&P 500, averaging annual gains above the benchmark. The ETF holds 670 stocks across nine sectors, using quantitative models to assess both 12-month and six-month performance to confirm momentum trends.
The fund’s approach mirrors strategies used by prominent investors like Paul Tudor Jones and Peter Lynch, who emphasize holding winning positions while cutting underperformers quickly.