VFMO vs. VCEB
Compare and contrast key facts about Vanguard U.S. Momentum Factor ETF (VFMO) and Vanguard ESG U.S. Corporate Bond ETF (VCEB).
VFMO and VCEB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFMO is managed by Vanguard. It was launched on Feb 13, 2018. VCEB is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Barclays MSCI US Corp SRI Select Index. It was launched on Sep 22, 2020.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFMO or VCEB.
Key characteristics
| VFMO | VCEB | |
|---|---|---|
| YTD Return | 11.53% | -1.26% |
| 1Y Return | 35.16% | 2.94% |
| 3Y Return (Ann) | 6.34% | -2.58% |
| Sharpe Ratio | 1.93 | 0.40 |
| Daily Std Dev | 17.27% | 6.90% |
| Max Drawdown | -36.77% | -21.60% |
| Current Drawdown | -3.41% | -10.89% |
Correlation
The correlation between VFMO and VCEB is 0.22, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VFMO vs. VCEB - Performance Comparison
In the year-to-date period, VFMO achieves a 11.53% return, which is significantly higher than VCEB's -1.26% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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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%.
Risk-Adjusted Performance
VFMO vs. VCEB - Risk-Adjusted Performance 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.
Dividends
VFMO vs. VCEB - Dividend Comparison
VFMO's dividend yield for the trailing twelve months is around 0.66%, less than VCEB's 4.08% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|
VFMO Vanguard U.S. Momentum Factor ETF | 0.66% | 0.89% | 1.72% | 0.81% | 0.45% | 1.22% | 0.70% |
VCEB Vanguard ESG U.S. Corporate Bond ETF | 4.08% | 3.70% | 2.84% | 1.69% | 0.43% | 0.00% | 0.00% |
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. For additional features, visit the drawdowns tool.
Volatility
VFMO vs. VCEB - Volatility Comparison
Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 6.01% compared to Vanguard ESG U.S. Corporate Bond ETF (VCEB) at 2.07%. 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.