One rather assumes, darling, that the very name ‘Vanguard’ conjures images of…well, not exactly daring adventure, but a certain sensible steadfastness. They pioneered this indexing business back in the seventies, you know, and have been remarkably consistent ever since. Not terribly exciting, perhaps, but one does appreciate a bit of reliability in these volatile times.
And they’ve been doing rather well for themselves, haven’t they? A positively stream of funds flowing in – CORP-DEPO Research tells me they had the lion’s share over the last quarter of last year. One suspects a great many people are simply tired of chasing rainbows and prefer a modicum of… predictability.
For years, Vanguard offered us the usual low-fee, index-hugging funds. Perfectly adequate, of course. But they’ve been branching out, haven’t they? A spot of active management. Rather forward-thinking, really. As if anticipating a market where simply following the herd won’t quite do. When the bulls stop charging, one needs a bit more finesse, don’t you think?
And one of these new ventures, the Vanguard U.S. Momentum Factor ETF (VFMO +2.59%), is actually… shining. While everyone else is rather glumly watching their portfolios shrink, this little number is actually posting gains. A small triumph, admittedly, but one takes what one can get.
So, why might this particular ETF be a rather clever addition to one’s holdings at the moment? Let me explain.
Beating the Benchmarks – A Most Pleasant Surprise
It’s managed by Vanguard’s Quantitative Equity Group – a rather faceless entity, I confess, but led by a Mr. Scott Rodemer, who one assumes knows what he’s doing. They employ a rules-based system, naturally. Looking for stocks – of all sizes, mind you – that have outperformed their peers over six and twelve months. A sensible enough approach. They filter out the short-term nonsense, which is always a relief. The idea, quite simply, is to identify the winners and assume they’ll continue to win. A rather optimistic outlook, but one can’t fault the logic.
Currently, it holds 693 stocks, with Lam Research, GE Vernova, and Micron Technology leading the charge. Not terribly glamorous names, perhaps, but they seem to be getting the job done.
And the results? Well, it’s up 3.4% year-to-date and a rather impressive 27% over the last twelve months. Meanwhile, the S&P 500 is down 3.9% and up a mere 16%. And the Russell 3000? Down 3.3% and up 16.2%. A rather decisive victory, wouldn’t you agree? Over three years, it’s averaged a rather handsome 22.6% return. Though the five-year average of 9.4% is…slightly less thrilling.
It’s a rather splendid little performer in these turbulent times. When the market is behaving like a drunken sailor, it seems to hold its own. When the bulls are in a frenzy, it might not outshine them quite so dramatically. But right now, if one is looking for a spot of positivity to offset the gloom, this ETF is a rather excellent choice. A small victory, perhaps, but one should always celebrate the small victories, don’t you think?
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2026-03-23 22:33