Vanguard U.S. Multifactor ETF

Frequently Asked Questions About VFMF

What does VFMF invest in?

The fund's advisor utilizes a systematic, data-driven quantitative framework to analyze U.S. common stocks, building an equity portfolio specifically designed to capture exposure to various investment factors. The process begins with an initial filter that eliminates the most volatile securities from the investment universe. Subsequently, stocks are selected based on an equally weighted composite score derived from three targeted factors: momentum, which identifies companies demonstrating strong recent price performance; quality, focusing on businesses with robust fundamental health; and value, selecting stocks trading at attractive prices relative to their underlying financial metrics. This approach yields a highly diversified portfolio consisting of hundreds of individual holdings, encompassing a broad range of market capitalizations—including large, mid, and small-cap companies—as well as various economic sectors and distinct industry groups, thereby minimizing stock-specific risks. The portfolio undergoes periodic rebalancing to ensure sustained alignment with its intended factor exposures. The primary investment objective is to achieve long-term capital growth. Generally, a minimum of 80% of the fund's assets will be allocated to equity securities issued by U.S. corporations. Specifically, the Value factor is determined using metrics such as book value-to-price, forward earnings-to-price, and operating cash flows-to-price (for non-financial firms). Momentum is assessed via total returns over the T-12 to T-1 month period and the T-7 to T-1 month period, in addition to the intercept from a one-year regression of stock returns against their regional benchmark. For financial companies, the Quality factor is gauged by return on equity and share issuance, while for non-financial companies, it involves return on equity, gross profitability, changes in net operating assets, and leverage. The initial volatility screen systematically removes the 20% most volatile names within each market capitalization tier and applies this equally across all sectors.

What is the expense ratio of VFMF?

Vanguard U.S. Multifactor ETF (VFMF) charges an expense ratio of 0.18%. This is the annual fee deducted from fund assets to cover management and operations.

How big is VFMF?

Vanguard U.S. Multifactor ETF (VFMF) manages $703.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is VFMF actively managed or an index fund?

VFMF's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

When was VFMF launched?

Vanguard U.S. Multifactor ETF (VFMF) launched in February 2018 and is managed by Vanguard.

How has VFMF performed?

VFMF's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.