VFMO vs VOO
Vanguard US Momentum Factor ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VFMO delivered stronger 1-year returns. VFMO offers more diversification with 668 holdings.
Side-by-Side Comparison
| Metric | VFMO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.03% | |
| AUM | $2.0B | $979.0B | |
| Dividend Yield | 0.82% | 1.09% | |
| Holdings | 674 | 509 | |
| YTD Return | +19.13% | +13.79% | |
| 1Y Return | +31.98% | +23.01% | |
| 3Y Return (annualized) | +25.62% | +21.78% | |
| 5Y Return (annualized) | +12.88% | +13.39% | |
| Volatility (annualized) | 20.3% | 14.1% | |
| Max Drawdown | -36.8% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 13, 2018 | Sep 7, 2010 |
VFMO vs VOO Performance
Vanguard US Momentum Factor ETF (VFMO) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VFMO returned +31.98% while VOO returned +23.01%. Year to date, VFMO is up 19.13% versus a gain of 13.79% for VOO.
Over three years, VFMO compounded at +25.62% per year against +21.78% for VOO; over five years the annualized figures are +12.88% and +13.39% respectively. Across the full 9-year window we track, VFMO has the edge at +14.82% annualized vs +13.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -36.8% for VFMO and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VFMO charges 0.13% per year while VOO charges 0.03%. On a $10,000 position that is $13 vs $3 annually, a gap of $10 per year that compounds over a long holding period. On income, VFMO currently yields 0.82% against 1.09% for VOO.
Holdings Overlap
VFMO and VOO share 128 holdings out of 1045 unique holdings combined, representing a 21.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VFMO or VOO?
VFMO has an expense ratio of 0.13% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, VFMO or VOO?
Over the past year VFMO returned +31.98% vs +23.01% for VOO, so VFMO leads on 1-year performance. Over the longest common window we track (9 years), VFMO annualized +14.82% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VFMO or VOO?
VFMO has been the more volatile fund at 20.3% annualized versus 14.1% for VOO. Worst drawdown: VFMO -36.8% vs VOO -34.3%.
Should I hold both VFMO and VOO?
VFMO and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VFMO and VOO?
VFMO and VOO share 128 common holdings with a 21.8% weight overlap. Combined, they hold 1045 unique securities.
Which pays a higher dividend, VFMO or VOO?
VFMO yields 0.82% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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