VFMO vs. VCEB

Last updated Jun 26, 2026

VFMO (Vanguard U.S. Momentum Factor ETF) and VCEB (Vanguard ESG U.S. Corporate Bond ETF) are both exchange-traded funds - VFMO is a Momentum fund actively managed by Vanguard, while VCEB is a Corporate Bonds fund tracking the Bloomberg Barclays MSCI US Corp SRI Select Index. VFMO is actively managed, while VCEB is passively managed. Over the past 5 years, VFMO returned 14.38%/yr vs 0.49%/yr for VCEB. At a 0.25 correlation, their price movements are largely independent. VFMO charges 0.13%/yr vs 0.12%/yr for VCEB.

Performance

VFMO vs. VCEB - Performance Comparison

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

Returns By Period

In the year-to-date period, VFMO achieves a 28.14% return, which is significantly higher than VCEB's 0.98% return.

VFMO

• 1D: 2.05%
• 1M: 4.29%
• YTD: 28.14%
• 6M: 24.50%
• 1Y: 46.44%
• 3Y*: 28.85%
• 5Y*: 14.38%
• 10Y*: —

VCEB

• 1D: 0.09%
• 1M: 0.87%
• YTD: 0.98%
• 6M: 0.75%
• 1Y: 4.71%
• 3Y*: 5.19%
• 5Y*: 0.49%
• 10Y*: —

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

VFMO vs. VCEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VFMO Vanguard U.S. Momentum Factor ETF	28.14%	17.39%	26.14%	16.25%	-12.84%	19.16%	24.56%
VCEB Vanguard ESG U.S. Corporate Bond ETF	0.98%	7.48%	2.23%	8.52%	-15.15%	-1.99%	2.45%

Correlation

The correlation between VFMO and VCEB is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020	0.25

The correlation between VFMO and VCEB shifts across timeframes, from 0.25 (all time) to 0.37 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFMO vs. VCEB — Risk / Return Rank

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

VFMO

VFMO Risk / Return Rank: 77
VFMO Sharpe Ratio Rank: 76
VFMO Sortino Ratio Rank: 68
VFMO Omega Ratio Rank: 69
VFMO Calmar Ratio Rank: 86
VFMO Martin Ratio Rank: 86

VCEB

VCEB Risk / Return Rank: 35
VCEB Sharpe Ratio Rank: 35
VCEB Sortino Ratio Rank: 34
VCEB Omega Ratio Rank: 32
VCEB Calmar Ratio Rank: 38
VCEB Martin Ratio Rank: 37

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.

VFMO vs. VCEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Momentum Factor ETF (VFMO) and Vanguard ESG U.S. Corporate Bond ETF (VCEB). 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.

	VFMO	VCEB	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.13	+0.96
Sortino ratio: Return per unit of downside risk	2.70	1.66	+1.03
Omega ratio: Gain probability vs. loss probability	1.36	1.20	+0.16
Calmar ratio: Return relative to maximum drawdown	4.25	1.68	+2.57
Martin ratio: Return relative to average drawdown	15.78	5.04	+10.75

VFMO vs. VCEB - Sharpe Ratio Comparison

The current VFMO Sharpe Ratio is 2.09, which is higher than the VCEB Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of VFMO and VCEB, 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

VFMO vs. VCEB - Drawdown Comparison

The maximum VFMO drawdown since its inception was -36.77%, which is greater than VCEB's maximum drawdown of -21.60%. Use the drawdown chart below to compare losses from any high point for VFMO and VCEB.

Drawdown Indicators

	VFMO	VCEB	Difference
Max Drawdown Largest peak-to-trough decline	-36.77%	-21.60%	-15.17%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-2.82%	-8.16%
Max Drawdown (3Y) Largest decline over 3 years	-24.40%	-6.09%	-18.31%
Max Drawdown (5Y) Largest decline over 5 years	-25.80%	-21.39%	-4.41%
Current Drawdown Current decline from peak	-0.53%	-0.40%	-0.13%
Average Drawdown Average peak-to-trough decline	-7.72%	-7.56%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	0.94%	+2.01%

Volatility

VFMO vs. VCEB - Volatility Comparison

Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 8.30% compared to Vanguard ESG U.S. Corporate Bond ETF (VCEB) at 1.21%. This indicates that VFMO's price experiences larger fluctuations and is considered to be riskier than VCEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMO	VCEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.30%	1.21%	+7.09%
Volatility (6M) Calculated over the trailing 6-month period	17.41%	3.23%	+14.18%
Volatility (1Y) Calculated over the trailing 1-year period	22.36%	4.19%	+18.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.91%	6.84%	+15.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.64%	6.64%	+17.00%

VFMO vs. VCEB - Expense Ratio Comparison

VFMO has a 0.13% expense ratio, which is higher than VCEB's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFMO vs. VCEB - Dividend Comparison

VFMO's dividend yield for the trailing twelve months is around 0.57%, less than VCEB's 4.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
VCEB Vanguard ESG U.S. Corporate Bond ETF	4.62%	4.57%	4.47%	3.70%	2.84%	1.69%	0.43%	0.00%	0.00%
VFMO Vanguard U.S. Momentum Factor ETF	0.57%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%

Frequently Asked Questions

Can I hold both VFMO and VCEB in my portfolio?

VFMO and VCEB have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMO or VCEB?

VFMO has higher volatility (8.30%) compared to VCEB (1.21%). In terms of maximum drawdown, VFMO dropped -36.77% vs VCEB's -21.60%.

Which ETF is better, VFMO or VCEB?

On 5-year performance, VFMO leads with 14.38% vs 0.49% for VCEB. On fees, VCEB is cheaper at 0.12% per year. On volatility, VCEB has been the lower-risk option at 1.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMO or VCEB?

Over the 5-year period, VFMO has performed better with a 14.38% return vs 0.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMO or VCEB?

VCEB is cheaper with a 0.12% expense ratio, compared with 0.13% for VFMO.

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

VCEB has the higher dividend yield at 4.62%, compared with 0.57% for VFMO.

What is the main difference between VFMO and VCEB?

VFMO is categorized as Momentum, while VCEB is Corporate Bonds. Their fees differ too: 0.13% for VFMO and 0.12% for VCEB.

Which has better risk-adjusted returns?

VFMO currently has the higher Sharpe Ratio (2.09 vs 1.13), 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.