Meet the Magnificent Vanguard ETF Crushing the S&P 500 in 2026, Thanks to Its Unique Momentum-Driven Strategy
This fund has just $2 billion in assets, but it might deserve more attention because of its solid returns.
Overview
The world's best investors often succeed because they let their winning stocks run while quickly cutting their losers. In fact, top fund managers including Paul Tudor Jones, Peter Lynch, and Ed Seykota cite this approach as a core part of their respective strategies.
The Vanguard U.S. Momentum Factor ETF (NYSEMKT: VFMO) is an exchange-traded fund (ETF) that exclusively invests in winners. It uses a mathematical model to identify stocks with upward momentum, placing a higher emphasis on those showing sustained returns over the past 12 months of trading.
Details
The ETF is up 17% so far in 2026, crushing the S&P 500 (SNPINDEX: ^GSPC) index, which is sitting on a gain of just 9.4%. But its recent outperformance isn't a one-off, because the fund has beaten the market on average every year since it launched in 2018.
Source
Originally published at www.fool.com.