Vanguard Momentum ETFs Beat S&P 500 Over Multiple Periods Despite Low Tech Exposure

US5000.03%
According to The Motley Fool, Vanguard's two momentum-based ETFs—the Vanguard US Momentum Factor ETF (VFMO-US) and Vanguard US Multi-Factor ETF (VFMF-US)—have outperformed the S&P 500 year-to-date and over the past one, three, and five years. Both funds, listed over eight years ago, achieved this outperformance while maintaining low exposure to technology stocks and large-cap concentration. The S&P 500's tech sector weighting has risen to nearly 40%, creating high concentration risk, whereas these two Vanguard funds distribute holdings more evenly across growth, defensive, and cyclical sectors. Additionally, over half of each fund's assets are invested in mid-cap and small-cap stocks, providing portfolio diversification when paired with S&P 500 funds.
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