What is a momentum factor ETF?

A momentum factor ETF aims to capture stocks that have shown strong recent price performance. The strategy assumes that these trends may continue. MTUM and VFMO both follow this approach but use different underlying methodologies and index providers. Investors should understand that momentum is a specific investment style, not a broad market bet, and it can involve higher volatility than traditional equity funds during market shifts.

Why do expense ratios matter?

The expense ratio is an annual fee charged by the fund manager, deducted from the fund's assets. It directly impacts net returns over time. For example, MTUM charges 0.15% and VFMO charges 0.13%. While a 0.02 percentage point difference may seem small, compounding over many years can result in noticeable differences in investment growth. Lower costs are generally preferred, all else being equal.

How do the fees for MTUM and VFMO compare?

MTUM has an expense ratio of 0.15%, whereas VFMO has a slightly lower expense ratio of 0.13%. This means VFMO is 0.02 percentage points cheaper annually than MTUM. These fees are automatically deducted from the fund's total return, so a lower expense ratio allows investors to retain a larger portion of their gains, assuming other factors like performance and tracking remain similar.

Are the holdings of MTUM and VFMO similar?

MTUM and VFMO share five holdings in their top ten lists: AMD, MU, INTC, SNDK, and AMAT. However, their weightings differ significantly. MTUM's top holding, AMD, represents 5.86% of its portfolio, while VFMO's largest position, KLAC, is just 1.24%. This indicates VFMO offers broader diversification with smaller individual exposures, whereas MTUM may be more concentrated in fewer leading momentum names.

How do the dividend yields compare?

MTUM reports a dividend yield of 0.59%, while VFMO reports a slightly higher yield of 0.61%. Both funds have modest yields, reflecting a tilt towards growth-oriented companies that may prioritise capital appreciation over regular cash payouts. It is important to remember that yields fluctuate as stock prices and dividends change. These figures represent recent trailing yields and are not guaranteed for the future.

What size companies do these funds focus on?

MTUM is categorised as a Large Blend fund, typically investing in larger US companies. In contrast, VFMO is categorised as a Mid-Cap Blend fund, focusing on medium-sized US companies. While both strategies target momentum, the underlying market capitalisation focus differs. This means MTUM and VFMO provide exposure to different segments of the US equity market, potentially leading to varied performance during different economic cycles.

How established are these ETFs?

MTUM was launched on 16 April 2013, giving it a longer operating history than VFMO, which began on 13 February 2018. MTUM's additional years allow for a more extensive performance track record to review. VFMO, being newer, has less historical data available for long-term analysis. A longer inception date can sometimes provide investors with more confidence regarding how the fund handles various market conditions.

Does the fund size affect liquidity?

Liquidity refers to how easily an investor can buy or sell shares at a fair price. MTUM has net assets of $24.8 billion, indicating a very large and likely highly liquid fund. VFMO has net assets of $1.9 billion, which is smaller. While both are accessible, larger funds like MTUM often trade with tighter bid-ask spreads due to higher trading volumes, potentially reducing transaction costs for active traders.

Can I see the sector weights for these funds?

For both MTUM and VFMO, detailed sector weightings are not available in the provided data. This limits the ability to directly compare their exposure to specific industries like Technology, Healthcare, or Financials. Investors typically rely on sector data to assess concentration risk, so its absence means you cannot fully evaluate how diversified or concentrated these funds are across different parts of the economy using this information alone.

What does 'index tracked: not available' mean?

This notation indicates that the specific underlying index each ETF aims to replicate is not provided in the current dataset. Knowing the exact index, such as MSCI USA Momentum or Vanguard US Momentum, helps investors understand the precise rules for stock selection and rebalancing. Without this detail, you cannot verify the exact methodology, though both funds are broadly described as momentum-focused US equity ETFs based on their names and categories.

MTUM vs VFMO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares MTUM and VFMO, examining fees, holdings, dividends and how each fund tracks its market. MTUM has a 0.15% expense ratio, while VFMO is 0.13%. They share five top holdings, including AMD and MU. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

MTUM

Metric

VFMO

0.15%

Expense Ratio

0.13%

0.59%

Dividend Yield

0.61%

$24.80B

Net Assets

$1.92B

129

Holdings

673

Apr 16, 2013

Inception Date

Feb 13, 2018

–

Index Tracked

–

Large Blend

Fund Category

Mid-Cap Blend

VFMO costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	MTUM	VFMO
AMDAdvanced Micro Devices, Inc.	5.86%	1.15%
MUMicron Technology, Inc.	5.29%	1.22%
INTCIntel Corporation	4.39%	1.11%
SNDKSandisk Corporation	3.21%	0.98%
AMATApplied Materials, Inc.	2.75%	1.22%

Discover More Comparisons

MTUM vs SPMO

Compare MTUM and SPMO on fees, holdings, dividends and tracking. Review expense ratios of 0.15% versus 0.13% and yields for this momentum ETF analysis.

SPMO vs VFMO

Compare SPMO and VFMO on fees, holdings, dividends, and tracking. Both charge a 0.13 expense ratio. Analyse top stocks like MU, AMD, LRCX and INTC.

VFMF vs VFMO

Compare VFMF and VFMO on fees, yields and holdings. VFMF costs 0.18% with 1.33% yield, while VFMO costs 0.13% with 0.61% yield for this review.

Investment Analysis

MTUM

Pros

Expense ratio is low at 0.15 per cent for a large US momentum factor fund.
Assets under management are substantial at 24.8 billion dollars, supporting liquidity.
Inception in 2013 provides a longer performance history than newer momentum products.

Considerations

Top holdings can be concentrated, with the largest position at 5.86 per cent.
Dividend yield is modest at 0.59 per cent, reflecting growth tilt.
Sector weights are not available, limiting transparency on industry exposure.

VFMO

Pros

Expense ratio is slightly lower at 0.13 per cent for US momentum exposure.
Top holdings are small at 1.24 per cent, indicating granular diversification.
Dividend yield is marginally higher at 0.61 per cent than its peer.

Considerations

Assets under management are smaller at 1.9 billion dollars, which may affect spread tightness.
Inception in 2018 means less historical performance data than earlier launches.
Sector weights are not available, so industry risks cannot be assessed from disclosures.

About MTUM and VFMO

MTUM (MTUM)

The iShares MSCI USA Momentum Factor ETF is designed for investors looking to capture the performance of US large-cap companies with strong recent price momentum. This fund targets a 'momentum' factor strategy, which is based on the idea that stocks with higher recent returns may continue to outperform those with lower returns over a shorter timeframe. With a low expense ratio of 0.15%, it offers a cost-effective way to gain exposure to this specific investment style. The portfolio is concentrated, holding approximately 129 securities that meet its momentum criteria, differing significantly from broader, more diversified market-cap-weighted funds. Investors should be aware that momentum strategies can be cyclical; while they may outperform in trending markets, they can also lag during periods of sharp reversals or when market leadership changes quickly. As with any equity investment, values can rise and fall, and past performance is not a reliable indicator of future results. This fund is intended as part of a broader investment strategy and may not be suitable for all investors.

VFMO (VFMO)

The Vanguard U.S. Momentum Factor ETF (VFMO) is a fund designed to capture the momentum factor within the U.S. equity market. Momentum is an investment style that seeks to hold securities with high short- and long-term price performance, assuming that winners tend to continue outperforming. This fund provides diversified exposure through approximately 673 holdings, primarily focused on mid-cap blend equities. With a competitive expense ratio of 0.13% and net assets of USD 1.92 billion, it offers a low-cost avenue for investors interested in this specific factor strategy. Launched in February 2018, the fund pays a dividend yield of 0.61%. As with any investment, values can fluctuate, and past performance is not indicative of future results.

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MTUM vs VFMO

Fund Snapshot