VFMF
Vanguard U.S. Multifactor ETF
📎 Investment Objective
The Vanguard U.S. Multifactor ETF seeks to track the performance of a benchmark index that measures the investment return of U.S. stocks exhibiting certain 'factor' characteristics, such as lower volatility, value, momentum, and quality.
Overview
ETF tracking Vanguard U.S. Multifactor ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Vanguard U.S. Multifactor ETF seeks to track the performance of a benchmark index that measures the investment return of U.S. stocks exhibiting certain 'factor' characteristics, such as lower volatility, value, momentum, and quality.
🎯 Investment Strategy
The ETF employs a passive management, or indexing, investment approach designed to track the performance of the FTSE USA Multifactor Index. This index is composed of U.S. large- and mid-capitalization stocks selected and weighted based on specific factor characteristics.
✨ Key Features
- Diversified exposure to a portfolio of U.S. stocks with factor-based tilts
- Seeks to provide returns that outperform the broad U.S. stock market over the long term
- Low expense ratio of 0.00%
- Relatively new fund with limited performance history
⚠️ Primary Risks
- Market risk: The value of the fund's holdings can decline due to general market and economic conditions
- Factor risk: The fund's focus on specific investment factors may underperform the broader market at times
- Concentration risk: The fund's focus on U.S. stocks makes it susceptible to risks specific to that market
- Liquidity risk: As a new fund, it may have lower trading volume and liquidity compared to more established ETFs
👤 Best For
The Vanguard U.S. Multifactor ETF may be suitable for long-term investors seeking diversified exposure to U.S. stocks with a focus on specific factor characteristics, such as lower volatility, value, momentum, and quality. Due to its limited performance history, this ETF may be best suited for investors with a higher risk tolerance and a long-term investment horizon.