VFMO vs VTI
Vanguard US Momentum Factor ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VFMO delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VFMO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.03% | |
| AUM | $2.0B | $663.5B | |
| Dividend Yield | 0.82% | 1.07% | |
| Holdings | 674 | 3,543 | |
| YTD Return | +21.47% | +14.22% | |
| 1Y Return | +32.35% | +22.19% | |
| 3Y Return (annualized) | +26.09% | +21.27% | |
| 5Y Return (annualized) | +13.23% | +12.23% | |
| Volatility (annualized) | 20.4% | 15.3% | |
| Max Drawdown | -36.8% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 13, 2018 | May 24, 2001 |
VFMO vs VTI Performance
Vanguard US Momentum Factor ETF (VFMO) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VFMO returned +32.35% while VTI returned +22.19%. Year to date, VFMO is up 21.47% versus a gain of 14.22% for VTI.
Over three years, VFMO compounded at +26.09% per year against +21.27% for VTI; over five years the annualized figures are +13.23% and +12.23% respectively. Across the full 9-year window we track, VFMO has the edge at +15.07% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFMO charges 0.13% per year while VTI 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 1.07% for VTI.
Holdings Overlap
VFMO and VTI share 508 holdings out of 2943 unique holdings combined, representing a 22.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VFMO or VTI?
VFMO has an expense ratio of 0.13% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, VFMO or VTI?
Over the past year VFMO returned +32.35% vs +22.19% for VTI, so VFMO leads on 1-year performance. Over the longest common window we track (9 years), VFMO annualized +15.07% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, VFMO or VTI?
VFMO has been the more volatile fund at 20.4% annualized versus 15.3% for VTI. Worst drawdown: VFMO -36.8% vs VTI -56.6%.
Should I hold both VFMO and VTI?
VFMO and VTI have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VFMO and VTI?
VFMO and VTI share 508 common holdings with a 22.5% weight overlap. Combined, they hold 2943 unique securities.
Which pays a higher dividend, VFMO or VTI?
VFMO yields 0.82% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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