Vanguard's momentum-driven ETF continues to beat the S&P 500 by aggressively purging underperformers and rotating into high-growth tech stocks like Micron, Dell, and AMD.
Sandisk is a top holding in the momentum ETF due to strong 12-month performance.
Micron Technology is a top holding in the momentum ETF due to strong 12-month performance.
Dell Technologies is a top holding in the momentum ETF due to strong 12-month performance.
Advanced Micro Devices is a top holding in the momentum ETF due to strong 12-month performance.
Intel is a top holding in the momentum ETF due to strong 12-month performance.
Applied Materials is a top holding in the momentum ETF due to strong 12-month performance.
Nvidia is mentioned as a stock that has not consistently held its place in the ETF but is still a notable momentum stock.
The Vanguard U.S. Momentum Factor ETF (VFMO) has returned 18.5% year-to-date, significantly outperforming the S&P 500's 10.9% gain. By utilizing mathematical models to target stocks with strong 12-month performance and maintaining a high 99.9% portfolio turnover rate, the fund consistently rotates into high-momentum leaders in the technology and healthcare sectors.
The fund uses mathematical models to identify stocks trending higher, specifically emphasizing sustained returns over the previous 12 months while ensuring the upward trend is driven by fundamental strength rather than broad market movement.