The Vanguard multi-factor ETF includes large-, mid- and small-cap stocks and is home to 501 stocks with a median market value of $9.3 billion, indicating a mid-cap tilt. While the fund is sector agnostic, the consumer discretionary and financial services sectors combine for almost 46% of VFMF’s roster.
VFMF “goes further down the market-cap spectrum than most of its multifactor peers, where factor returns have tended to be richer,” according to Morningstar.
As is the case with many Vanguard ETFs, VFMF is favorably priced. The fund’s annual fee of 0.18% is favorable relative to the broader universe of domestic large-cap smart beta strategies.
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