VFMO vs. VFQY

Last updated Jun 5, 2026

VFMO (Vanguard U.S. Momentum Factor ETF) and VFQY (Vanguard U.S. Quality Factor ETF) are both exchange-traded funds - VFMO is a Momentum fund actively managed by Vanguard, while VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard. Both are actively managed. Over the past 5 years, VFMO returned 14.03%/yr vs 8.54%/yr for VFQY. Their correlation of 0.84 suggests significant overlap in exposure. Both charge a 0.13% expense ratio.

Performance

VFMO vs. VFQY - Performance Comparison

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

Returns By Period

In the year-to-date period, VFMO achieves a 24.71% return, which is significantly higher than VFQY's 8.53% return.

VFMO

• 1D: 0.84%
• 1M: 4.64%
• YTD: 24.71%
• 6M: 22.49%
• 1Y: 44.76%
• 3Y*: 28.43%
• 5Y*: 14.03%
• 10Y*: —

VFQY

• 1D: 0.80%
• 1M: 3.49%
• YTD: 8.53%
• 6M: 8.67%
• 1Y: 20.07%
• 3Y*: 16.73%
• 5Y*: 8.54%
• 10Y*: —

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

VFMO vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMO Vanguard U.S. Momentum Factor ETF	24.71%	17.39%	26.14%	16.25%	-12.84%	19.16%	31.36%	28.22%	-11.41%
VFQY Vanguard U.S. Quality Factor ETF	8.53%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-7.85%

Correlation

The correlation between VFMO and VFQY is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 16, 2018	0.84

The correlation between VFMO and VFQY shifts across timeframes, from 0.68 (1 year) to 0.86 (5 years), reflecting how their relationship changes across market environments.

VFMO vs. VFQY - Sectors Allocation Comparison

Sectors	VFMO	VFQY
Industrials	24.7%	16.8%
Healthcare	22.9%	8.9%
Technology	17.5%	25.8%
Consumer Cyclical	8.7%	13.3%
Energy	7.3%	2.2%
Financial Services	6.5%	18.9%
Basic Materials	6.4%	2.2%
Communication Services	3.4%	2.8%
Consumer Defensive	2.5%	9.2%
Utilities	0.2%	-
Real Estate	0.1%	-

Return for Risk

VFMO vs. VFQY — Risk / Return Rank

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

VFMO

VFMO Risk / Return Rank: 69
VFMO Sharpe Ratio Rank: 65
VFMO Sortino Ratio Rank: 60
VFMO Omega Ratio Rank: 60
VFMO Calmar Ratio Rank: 80
VFMO Martin Ratio Rank: 80

VFQY

VFQY Risk / Return Rank: 45
VFQY Sharpe Ratio Rank: 44
VFQY Sortino Ratio Rank: 44
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 46
VFQY Martin Ratio Rank: 50

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. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Momentum Factor ETF (VFMO) and Vanguard U.S. Quality Factor ETF (VFQY). 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.

	VFMO	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	2.12	1.50	+0.63
Sortino ratio: Return per unit of downside risk	2.77	2.18	+0.59
Omega ratio: Gain probability vs. loss probability	1.36	1.26	+0.10
Calmar ratio: Return relative to maximum drawdown	4.09	2.21	+1.88
Martin ratio: Return relative to average drawdown	15.46	8.19	+7.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFMO vs. VFQY - Sharpe Ratio Comparison

The current VFMO Sharpe Ratio is 2.12, which is higher than the VFQY Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of VFMO and VFQY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VFMO	VFQY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	1.50	+0.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.47	+0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.54	+0.12

Drawdowns

VFMO vs. VFQY - Drawdown Comparison

The maximum VFMO drawdown since its inception was -36.77%, roughly equal to the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for VFMO and VFQY.

Drawdown Indicators

	VFMO	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-36.77%	-37.41%	+0.64%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-9.12%	-1.86%
Max Drawdown (3Y) Largest decline over 3 years	-24.40%	-20.67%	-3.73%
Max Drawdown (5Y) Largest decline over 5 years	-25.80%	-25.93%	+0.13%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-7.76%	-6.69%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	2.46%	+0.44%

Volatility

VFMO vs. VFQY - Volatility Comparison

Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 6.05% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 2.60%. This indicates that VFMO's price experiences larger fluctuations and is considered to be riskier than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMO	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.05%	2.60%	+3.45%
Volatility (6M) Calculated over the trailing 6-month period	16.38%	9.51%	+6.87%
Volatility (1Y) Calculated over the trailing 1-year period	21.21%	13.49%	+7.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.70%	18.33%	+3.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.56%	20.87%	+2.69%

VFMO vs. VFQY - Expense Ratio Comparison

Both VFMO and VFQY have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VFMO vs. VFQY - Dividend Comparison

VFMO's dividend yield for the trailing twelve months is around 0.62%, less than VFQY's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
VFMO Vanguard U.S. Momentum Factor ETF	0.62%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%
VFQY Vanguard U.S. Quality Factor ETF	1.09%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%

Frequently Asked Questions

Can I hold both VFMO and VFQY in my portfolio?

VFMO and VFQY have a correlation of 0.68, 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 VFQY?

VFMO has higher volatility (6.05%) compared to VFQY (2.60%). In terms of maximum drawdown, VFMO dropped -36.77% vs VFQY's -37.41%.

Which ETF is better, VFMO or VFQY?

On 5-year performance, VFMO leads with 14.03% vs 8.54% for VFQY. Both ETFs have the same 0.13% expense ratio. On volatility, VFQY has been the lower-risk option at 2.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMO or VFQY?

Over the 5-year period, VFMO has performed better with a 14.03% return vs 8.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMO or VFQY?

VFMO and VFQY have the same expense ratio: 0.13% per year.

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

VFQY has the higher dividend yield at 1.09%, compared with 0.62% for VFMO.

What is the main difference between VFMO and VFQY?

VFMO is categorized as Momentum, while VFQY is Mid Cap Blend Equities.

Which has better risk-adjusted returns?

VFMO currently has the higher Sharpe Ratio (2.12 vs 1.50), 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.