What is a momentum factor ETF?

A momentum factor ETF, like VFMO, selects stocks based on recent price performance. The idea is that securities which have outperformed recently may continue to do so over the next period. This approach contrasts with traditional broad market funds by tilting towards stocks with strong recent momentum, potentially offering different risk and return characteristics compared to simply tracking the entire market.

What does a total stock market ETF represent?

A total stock market ETF like VTI aims to track the overall performance of the US equity market. It holds a wide variety of stocks across large, mid and small-cap companies. The goal is to replicate the broader market's movement. Rather than focusing on a specific sector or factor, it seeks comprehensive exposure to domestic public equity markets as a single portfolio.

How do the expense ratios of VFMO and VTI compare?

There is a notable difference in cost. VTI has an expense ratio of 0.03%, which is exceptionally low. VFMO, reflecting its more specific factor-based strategy, has an expense ratio of 0.13%. This represents a difference of 0.10 percentage points. Lower expense ratios generally mean more of the investment return is retained by the investor over time, assuming similar performance.

What is the difference in net assets between the two funds?

The difference in scale is substantial. VTI is a highly established ETF with net assets of $692.2 billion, offering very high liquidity. VFMO is significantly smaller with net assets of $1.9 billion. While still providing sufficient liquidity for institutional operations, the sheer size of VTI generally contributes to tighter bid-ask spreads and easier trading volumes compared to a smaller fund.

Do VFMO and VTI have similar top holdings?

The portfolios focus on different areas. VTI's top holdings are mega-cap tech leaders like NVDA, AAPL and MSFT, reflecting the market's dominant weighting. VFMO's top holdings, such as KLAC, AMAT and MU, are selected based on momentum, leading to a distinct mix. The only shared holding in their top ten lists is MU, indicating that their investment targets are largely different despite both being US equity funds.

How do the dividend yields compare between these funds?

Both funds currently have relatively modest dividend yields, which is common for growth-oriented equity ETFs. VTI offers a yield of 1.02%, while VFMO has a yield of 0.61%. While VTI yields slightly more, investors looking for high income might find both low. Distributions from ETFs can vary and are not guaranteed, depending on the performance of the underlying companies and market conditions.

What information is missing regarding their specific tracking?

Transparency varies slightly despite both being Vanguard funds. According to the available data, the specific index tracked by both VFMO and VTI is not available. Additionally, detailed sector weights for both funds are not available. This lack of specific data makes it more challenging for investors to assess the precise methodology and potential concentration risks within the portfolios compared to funds with fully disclosed metrics.

How does the history of the two funds compare?

There is a significant difference in their track records due to launch dates. VTI is a veteran ETF, with an inception date of May 24, 2001. This long history provides over two decades of performance data. VFMO is much newer, having launched on February 13, 2018. Consequently, VFMO offers a shorter historical dataset for evaluating its specific momentum strategy against market cycles.

What does 'Top holding weights' tell us about concentration?

Top holding weight refers to the percentage of the fund's total value invested in its largest single company. VTI's largest holding, NVDA, represents 6.87% of the fund, indicating significant concentration in mega-cap technology stocks. In contrast, VFMO's largest holding, KLAC, is 1.24%. This suggests VFMO is currently more diversified in its single-name exposure compared to VTI's market-cap weighted approach.

Which category do these ETFs belong to?

They are classified differently to serve different needs. VTI falls under the Large Blend category, reflecting its broad mandate to capture the entire US stock market, heavily weighted toward large-cap stocks. VFMO is classified as a Mid-Cap Blend. This suggests it likely focuses on mid-sized companies or a mix that tilts toward them via its momentum selection process, offering a different market capitalisation exposure.

VFMO vs VTI

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

This page compares VFMO and VTI, analysing fees, holdings and dividends. It explains how VFMO targets momentum and VTI tracks the broader US market, providing neutral insight into each fund's approach. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VFMO

Metric

VTI

0.13%

Expense Ratio

0.03%

0.61%

Dividend Yield

1.02%

$1.92B

Net Assets

$692.20B

673

Holdings

3,514

Feb 13, 2018

Inception Date

May 24, 2001

–

Index Tracked

–

Mid-Cap Blend

Fund Category

Large Blend

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

Shared Top Holdings

Holding	VFMO	VTI
MUMicron Technology, Inc.	1.22%	1.46%

Discover More Comparisons

VFMO vs XMMO

Compare VFMO and XMMO. Review expense ratios, net assets, dividend yields, and top holdings. Note index tracking data is not available for either fund.

VFMO vs VOO

Compare VFMO and VOO Vanguard ETFs. Review expense ratios, holdings, dividend yields, and tracking methods to understand key differences between these funds.

VIG vs VTI

Compare VIG and VTI fees, holdings, dividends and tracking methods. Review expense ratios, net assets and top stocks to understand differences.

Investment Analysis

VFMO

Pros

Expense ratio of 0.13% remains reasonable for a factor-based ETF with active rules.
Net assets of $1.9 billion provide sufficient scale for institutional liquidity and operations.
Top holdings such as KLAC, AMAT and MU support exposure to high-growth technology trends.

Considerations

Dividend yield of 0.61% is relatively low and may limit income generation for investors.
Index tracked is not available, reducing transparency about the specific momentum methodology used.
Sector weights are not available, making it harder to assess concentration risks across the portfolio.

VTI

Pros

Expense ratio of 0.03% is exceptionally low and cost-efficient for a total-market ETF.
Net assets of $692.2 billion offer very high liquidity and tight bid-ask spreads.
Top holdings include NVDA, AAPL and MSFT, reflecting broad leadership in large-capitalisation equities.

Considerations

Top holding weights reach 6.87%, exposing the fund to concentration in a few mega-caps.
Index tracked is not available, although the fund broadly mirrors total US market composition.
Sector weights are not available, limiting detailed analysis of industry diversification within the large blend.

About VFMO and VTI

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.

VTI (VTI)

This ETF offers broad exposure to the US equity market by tracking a comprehensive index of publicly traded companies. Designed as a large blend fund, it holds thousands of individual stocks, ranging from massive multinational corporations to smaller domestic firms. With an ultra-low expense ratio of 0.03%, it aims to provide cost-efficient long-term growth potential. The fund has a dividend yield of approximately 1.02%, reflecting the aggregate distributions from its holdings. Investors often consider this vehicle for core portfolio diversification, though it is essential to remember that stock market investments carry inherent risks, and values can fluctuate. Past performance is not indicative of future results, and returns are not guaranteed.

Buy VFMO or VTI in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

VFMO vs VTI

Fund Snapshot