What exactly is an ETF and how do these two differ?

An ETF is a fund that tracks a specific index or strategy. VFMO focuses on momentum factors within mid-cap blend stocks, aiming to capture stocks trending upwards. VOO tracks the S&P 500, providing exposure to large blend companies representing the broader market. While both are Vanguard products, their underlying strategies differ significantly.

How does the expense ratio affect my returns?

The expense ratio is the annual fee charged by the fund. VFMO has an expense ratio of 0.13%, while VOO is lower at 0.03%. This 0.10 percentage point difference means VOO retains more of its returns after fees. Over long periods, even small fee differences can compound, making the lower-cost fund more efficient for tracking its target index.

What does 'mid-cap blend' and 'large blend' mean?

These terms describe the size and style of companies in the funds. VOO is a large blend fund, holding major companies like Apple and Microsoft. VFMO is a mid-cap blend fund, focusing on medium-sized companies like KLA Corp. Large caps offer stability and scale, while mid-caps may provide different growth opportunities and volatility profiles compared to the broad large-cap market.

Which fund has larger net assets?

VOO has significantly larger net assets at $1.08 trillion, compared to VFMO's $1.9 billion. High assets under management, like VOO's, often indicate liquidity and widespread adoption. VFMO's moderate size still provides stability but reflects its more specialised momentum strategy. Larger funds may have better economies of scale, contributing to VOO's lower expense ratio.

How do the top holdings compare between the two funds?

The top holdings differ greatly. VOO is dominated by mega-cap tech leaders like NVDA (8.08%) and AAPL (7.03%). VFMO's top holdings are concentrated in semiconductor and tech equipment firms like KLAC (1.24%) and AMAT (1.22%). This shows VOO mirrors the broader market, while VFMO targets specific momentum stocks within the mid-cap range, leading to less overlap with large-cap indices.

Do these funds have any shared holdings?

Based on the data, there is limited overlap in top holdings. The only shared stock in the top ten lists for both funds is MU (Micron Technology). It appears in VOO's list with a 1.63% weight and in VFMO's list with a 1.22% weight. Most other top holdings are distinct due to their different market capitalisation focuses.

How do the dividend yields compare?

VOO has a dividend yield of 1.03%, which is higher than VFMO's 0.61%. This means VOO pays out more in distributions relative to its share price, suitable for income-focused investors. VFMO's lower yield reflects its momentum strategy, which often prioritises price appreciation over high dividend-paying stocks. Neither yield is guaranteed, as dividends can change.

Are the index tracking methods transparent?

According to the provided data, detailed index tracking information is not available for either fund. While VOO is known to track the S&P 500 and VFMO targets a momentum factor, specific methodology details are listed as unavailable in this comparison. Investors should consult fund documents for full transparency on how the underlying indices are constructed and maintained.

Which fund is more established in terms of age?

VOO is significantly older, with an inception date of 7 September 2010. VFMO was launched later on 13 February 2018. VOO's longer history provides more data points for analysing its performance against the S&P 500. VFMO is newer, reflecting a more recent trend towards factor-based investing strategies like momentum within the mid-cap space.

Is this financial advice for buying or selling?

No, this content is strictly educational and designed to help you understand the differences between VFMO and VOO. We do not recommend buying, selling, or holding any specific investment. All data points, including expense ratios and yields, are for informational purposes only. Always conduct your own due diligence and consider your financial situation before making investment decisions.

VFMO vs VOO

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

Compare VFMO and VOO, two Vanguard ETFs. VFMO targets U.S. momentum with a 0.13% expense ratio, while VOO tracks the S&P 500 with a 0.03% expense ratio. This page details their fees, holdings, dividends, and market tracking methods to help you understand their differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VFMO

Metric

VOO

0.13%

Expense Ratio

0.03%

0.61%

Dividend Yield

1.03%

$1.92B

Net Assets

$1.08T

673

Holdings

516

Feb 13, 2018

Inception Date

Sep 7, 2010

–

Index Tracked

–

Mid-Cap Blend

Fund Category

Large Blend

VOO costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VFMO	VOO
MUMicron Technology, Inc.	1.22%	1.63%

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SCHG vs VOO

Compare SCHG and VOO: 0.04% vs 0.03% expense ratio, large-cap growth vs the S&P 500, 196 vs 516 holdings, and a 0.37% vs 1.04% dividend yield.

Investment Analysis

VFMO

Pros

The fund offers exposure to mid-cap blend momentum strategies.
A low expense ratio of 0.13% helps preserve investor returns.
Assets total $1.9 billion, indicating moderate fund size and stability.

Considerations

Dividend yield is low at 0.61%, potentially limiting income generation.
Top holdings are concentrated in specific technology-related stocks.
Tracked index details are currently unavailable, limiting transparency.

VOO

Pros

The fund tracks large blend stocks with broad market exposure.
Expense ratio is very low at 0.03%, reducing overall costs.
Net assets are $1.08 trillion, reflecting significant size and liquidity.

Considerations

Concentration in top holdings like NVDA at 8.08% may increase risk.
Dividend yield of 1.03% may not suit income-focused investors.
Index tracking details are not available, limiting transparency about methodology.

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About VFMO and VOO

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.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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VFMO vs VOO

Fund Snapshot