The Vanguard fund is heavily allocated to the consumer discretionary and financial services sectors as those groups combine for nearly half the fund’s weight. VFMF’s advisor excludes the most volatile 20% of stocks from the fund’s potential lineup.
“It then sorts the remaining stocks in each bucket using a simple average of their value, momentum, and quality scores, and targets those representing the best scoring third by market value. Finally, it weights its holdings by the strength of their factor characteristics,” according to Morningstar.
VFMF is up almost 10% this year.
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