What Is the VFMF ETF? Returns, Expense Ratio, Holdings and Alternative ETFs Explained
The Vanguard U.S. Multifactor ETF is an actively managed fund that selects U.S. stocks by combining value, quality and momentum, aiming for factor-based diversification. Key points to check are the expense ratio, factor exposure and growth outlook, and comparison with single-factor ETFs is a useful selection criterion. The trading ticker is VFMF.
SubscribeWhat Is the Vanguard U.S. Multifactor ETF?
This is an actively managed multifactor ETF that uses a quantitative model to select U.S. stocks that are undervalued relative to their fundamentals, have strong financial health and show robust price momentum. It reflects the value, quality and momentum factors together.
It suits investors who want to differentiate from the broad market through a U.S. equity strategy that combines multiple factors.
It is an ETF managed by Vanguard using an active (discretionary) management approach.
How Does the Vanguard U.S. Multifactor ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | Active (does not track a benchmark) |
| Management Style | Active (multifactor) |
| Rebalancing Frequency | As needed (at the manager's discretion) |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.18% |
The fund selects stocks across a range of U.S. market capitalizations using a quantitative approach that combines the value, quality and momentum factors. It puts more weight on stocks that are undervalued relative to their fundamentals, financially sound and strong in momentum, while rules-based diversification reduces exposure to stocks with low liquidity.
- Quantitative selection combining value, quality and momentum
- Rules-based diversification to ease liquidity risk
Vanguard U.S. Multifactor ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $1.2B, and the total expense ratio (Expense Ratio) is 0.18% per year.
Unlike market-cap-weighted ETFs, the fund reflects multiple factors, so its performance can diverge from the market, and its allocation to small and mid-cap stocks makes it somewhat more volatile.
Vanguard U.S. Multifactor ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe performance of a multifactor strategy varies depending on which of its factors the market favors in a given period. Because it combines several factors, its path tends to be smoother than that of a single-factor fund, but relative performance gaps can appear when one particular style leads the market strongly.
Money tends to flow into multifactor ETFs when interest in factor investing is rising, and fund flows shift with market style rotation and management results.
Vanguard U.S. Multifactor ETF Pros and Cons
Its strength is diversification through a combination of factors, while factor deviation and small and mid-cap volatility are its weaknesses.
💪 Key Strengths
⚠️ Points to Watch
Vanguard U.S. Multifactor ETF Alternatives and Related Products
DYNF, THRO and JMEE shown in the table are active ETFs that use factor rotation or enhancement strategies. For exposure to a single factor, you can also compare momentum fund MTUM, quality fund QUAL and value factor fund VLUE. They differ in the factors they reflect, their management approach and their fees, so it is best to choose according to your investment style.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DYNF | iShares U.S. Equity Factor Rotation Active ETF | $66.80 | -0.8% | $41.9B | 0.26% | 0.84% | +9.8% |
 THRO | iShares U.S. Thematic Rotation Active ETF | $42.63 | -1.0% | $7.3B | 0.57% | 0.3% | +10.3% |
 ARKK | ARK Innovation ETF | $78.96 | -2.2% | $6.1B | 0.75% | - | -11.3% |
 JMEE | JPMorgan Small & Mid Cap Enhanced Equity ETF | $75.30 | +0.7% | $2.9B | 0.24% | 0.96% | +19.1% |
 PSC | Principal U.S. Small-Cap ETF | $68.08 | -0.4% | $2.7B | 0.38% | 0.59% | +20.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MU | Micron Technology Inc | 0.02% | $833.59 | -5.8% | $943.1B | 11.2 | 0.09% |
| NEM | Newmont Corp | 0.02% | $109.09 | +2.3% | $113.4B | 12.7 | 0.95% |
| VLO | Valero Energy Corp | 0.01% | $381.46 | -4.5% | $106.4B | 8.6 | 1.26% |
| HCA | HCA Healthcare Inc | 0.01% | $467.73 | -1.1% | $97.7B | 15.5 | 0.6% |
| MO | Altria Group Inc | 0.01% | $77.17 | -1.1% | $128.4B | 15.9 | 5.61% |
| MCK | Mckesson Corp | 0.01% | $998.38 | +0.4% | $116.4B | 26.7 | 0.32% |
| EOG | EOG Resources Inc | 0.01% | $157.89 | -4.6% | $82.8B | 12.3 | 2.6% |
| COP | Conoco Phillips | 0.01% | $146.84 | -4.7% | $176.4B | 19.4 | 2.3% |
Vanguard U.S. Multifactor ETF Investor Checkpoints
Here are the points to review before investing in VFMF. As a multifactor ETF, it is important to check its factor exposure, volatility, performance dispersion and fee level in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fee of an active multifactor ETF | On the low side |
| 📊 Factor Exposure | Check which factors are combined | Multiple factors |
| 📉 Volatility | Check volatility from the small and mid-cap allocation | Somewhat high |
| 📈 Performance Dispersion | Possibility of performance gaps versus the market | May vary |
Depending on the factors it reflects, performance can differ from the market-cap-weighted market, and the allocation to small and mid-cap stocks can make it somewhat more volatile. Relative performance gaps can appear when one particular style leads the market strongly.
This is a multifactor ETF suited to investors who expect differentiation from a U.S. equity strategy combining multiple factors. If you want single-factor exposure, a single-factor ETF may be the better choice, while VFMF can be an alternative if you prefer a combination of several factors.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 4, 2026.
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