TSME vs. VFMO

Last updated Jun 24, 2026

TSME (Thrivent Small-Mid Cap ESG ETF) and VFMO (Vanguard U.S. Momentum Factor ETF) are both exchange-traded funds - TSME is a Mid Cap Blend Equities fund actively managed by Thrivent, while VFMO is a Momentum fund actively managed by Vanguard. Both are actively managed. Over the past 3 years, TSME returned 22.33%/yr vs 27.88%/yr for VFMO. Their correlation of 0.88 suggests significant overlap in exposure. TSME charges 0.65%/yr vs 0.13%/yr for VFMO.

Performance

TSME vs. VFMO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Thrivent Small-Mid Cap ESG ETF (TSME) and Vanguard U.S. Momentum Factor ETF (VFMO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSME achieves a 20.35% return, which is significantly lower than VFMO's 25.84% return.

TSME

• 1D: -2.09%
• 1M: 7.53%
• YTD: 20.35%
• 6M: 17.91%
• 1Y: 37.53%
• 3Y*: 22.33%
• 5Y*: —
• 10Y*: —

VFMO

• 1D: -2.31%
• 1M: 4.69%
• YTD: 25.84%
• 6M: 22.71%
• 1Y: 44.30%
• 3Y*: 27.88%
• 5Y*: 14.02%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

TSME vs. VFMO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TSME Thrivent Small-Mid Cap ESG ETF	20.35%	13.79%	18.98%	17.82%	2.90%
VFMO Vanguard U.S. Momentum Factor ETF	25.84%	17.39%	26.14%	16.25%	1.98%

Correlation

The correlation between TSME and VFMO is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Oct 5, 2022	0.88

The correlation between TSME and VFMO has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

TSME vs. VFMO - Sectors Allocation Comparison

Sectors	TSME	VFMO
Industrials	27.7%	24.7%
Technology	23.4%	17.5%
Consumer Cyclical	16.4%	8.7%
Healthcare	9.5%	22.9%
Financial Services	8.6%	6.5%
Basic Materials	6.2%	6.4%
Consumer Defensive	4.3%	2.5%
Utilities	2.2%	0.2%
Energy	1.6%	7.3%
Communication Services	-	3.4%
Real Estate	-	0.1%

Return for Risk

TSME vs. VFMO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TSME

TSME Risk / Return Rank: 54
TSME Sharpe Ratio Rank: 55
TSME Sortino Ratio Rank: 55
TSME Omega Ratio Rank: 51
TSME Calmar Ratio Rank: 56
TSME Martin Ratio Rank: 54

VFMO

VFMO Risk / Return Rank: 67
VFMO Sharpe Ratio Rank: 63
VFMO Sortino Ratio Rank: 56
VFMO Omega Ratio Rank: 57
VFMO Calmar Ratio Rank: 80
VFMO Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TSME vs. VFMO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Thrivent Small-Mid Cap ESG ETF (TSME) and Vanguard U.S. Momentum Factor ETF (VFMO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TSME	VFMO	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.99	-0.27
Sortino ratio: Return per unit of downside risk	2.44	2.59	-0.15
Omega ratio: Gain probability vs. loss probability	1.30	1.34	-0.04
Calmar ratio: Return relative to maximum drawdown	2.56	4.05	-1.49
Martin ratio: Return relative to average drawdown	8.75	15.07	-6.32

TSME vs. VFMO - Sharpe Ratio Comparison

The current TSME Sharpe Ratio is 1.72, which is comparable to the VFMO Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of TSME and VFMO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TSME vs. VFMO - Drawdown Comparison

The maximum TSME drawdown since its inception was -26.59%, smaller than the maximum VFMO drawdown of -36.77%. Use the drawdown chart below to compare losses from any high point for TSME and VFMO.

Drawdown Indicators

	TSME	VFMO	Difference
Max Drawdown Largest peak-to-trough decline	-26.59%	-36.77%	+10.18%
Max Drawdown (1Y) Largest decline over 1 year	-14.72%	-10.98%	-3.74%
Max Drawdown (3Y) Largest decline over 3 years	-26.59%	-24.40%	-2.19%
Max Drawdown (5Y) Largest decline over 5 years	—	-25.80%	—
Current Drawdown Current decline from peak	-2.09%	-2.31%	+0.22%
Average Drawdown Average peak-to-trough decline	-5.13%	-7.73%	+2.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.30%	2.95%	+1.35%

Volatility

TSME vs. VFMO - Volatility Comparison

The current volatility for Thrivent Small-Mid Cap ESG ETF (TSME) is 7.80%, while Vanguard U.S. Momentum Factor ETF (VFMO) has a volatility of 8.33%. This indicates that TSME experiences smaller price fluctuations and is considered to be less risky than VFMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSME	VFMO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.80%	8.33%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	17.97%	17.49%	+0.48%
Volatility (1Y) Calculated over the trailing 1-year period	21.93%	22.34%	-0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.82%	21.90%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.82%	23.64%	-1.82%

TSME vs. VFMO - Expense Ratio Comparison

TSME has a 0.65% expense ratio, which is higher than VFMO's 0.13% expense ratio.

Dividends

TSME vs. VFMO - Dividend Comparison

TSME's dividend yield for the trailing twelve months is around 0.14%, less than VFMO's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
TSME Thrivent Small-Mid Cap ESG ETF	0.14%	0.17%	0.38%	0.53%	0.16%	0.00%	0.00%	0.00%	0.00%
VFMO Vanguard U.S. Momentum Factor ETF	0.39%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%

Frequently Asked Questions

Can I hold both TSME and VFMO in my portfolio?

TSME and VFMO have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSME or VFMO?

VFMO has higher volatility (8.33%) compared to TSME (7.80%). In terms of maximum drawdown, TSME dropped -26.59% vs VFMO's -36.77%.

Which ETF is better, TSME or VFMO?

On 3-year performance, VFMO leads with 27.88% vs 22.33% for TSME. On fees, VFMO is cheaper at 0.13% per year. On volatility, TSME has been the lower-risk option at 7.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TSME or VFMO?

Over the 3-year period, VFMO has performed better with a 27.88% return vs 22.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TSME or VFMO?

VFMO is cheaper with a 0.13% expense ratio, compared with 0.65% for TSME.

Which ETF pays a higher dividend yield, TSME or VFMO?

VFMO has the higher dividend yield at 0.39%, compared with 0.14% for TSME.

What is the main difference between TSME and VFMO?

TSME is categorized as Mid Cap Blend Equities, while VFMO is Momentum. They also come from different issuers: Thrivent and Vanguard. Their fees differ too: 0.65% for TSME and 0.13% for VFMO.

Which has better risk-adjusted returns?

VFMO currently has the higher Sharpe Ratio (1.99 vs 1.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.