Meet the Magnificent Momentum-Driven ETF Obliterating the S&P 500 in 2026
This actively managed exchange-traded fund is producing spectacular returns for investors thanks to its unique strategy.
Overview
Top fund managers like Peter Lynch and Paul Tudor Jones often credit their success to letting their winning investments run, while quickly cutting their losers. Lynch says doing the opposite would be equivalent to cutting the flowers and watering the weeds in your garden which, of course, would make no rational sense.
The Vanguard U.S. Momentum Factor ETF (NYSEMKT: VFMO) is an exchange-traded fund (ETF) that exclusively invests in winners. It uses mathematical models to identify stocks that are trending higher, and it places a greater emphasis on those showing sustained returns over the last 12 months of trading.
Details
The ETF has delivered a return of 18.5% so far in 2026 (as of the market close on Thursday, Sept. 10), so it's obliterating the benchmark S&P 500 index which is up 10.9%. That isn't a surprise, though, considering the fund has beaten the market every year on average since it launched in 2018.
Source
Originally published at www.fool.com.