VFMO
Vanguard U.S. Momentum Factor
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Whats the deal with Vanguard 'Factor' ETFs (VFMV, VFMO, VFMF, etc.)
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i'm doing a 25/25/25/25 VUG/VFMO/VTG/VXUS instead of VTI
40% BTC, 60% Vanguard VFMO
Buy some ETFs: SMH, VEU, PPA, BAR, VFMO, XLE. These themes hold both quality small and big companies. OR you could see the ETF holdings and invest in single stocks, although I don't like that method as much.
I am in similar boat and Fidelity advisors are chasing me. I decided not to go with them because they only understand one asset class: equities. And they are following the boiler plate recommendations. I end up managing on my own and select ETFs from Fidelity, Vanguard and Amplify. I split my funds between Vangaurd and Fidelity. I personally like Vanguard better. But didn’t want to put all the eggs with one basket even with SPIC insurance. My ETFS: FDMO, VOOG, VFMO, IBIT, QDVO, SHLD. about 15% allocation to each. You will never need a financial advisor or need to rebalance.
People correctly saying VOO and chill, but I'd like to expand on *how*. A RothIRA is double tax advantaged. You don't pay taxes on capital gains (growth) OR distribution (withdrawals). You're still within the window to contribute for 2024. I strongly encourage you to contribute the max $7000 for 2024, and then contribute the remaining $3000 for 2025. This can be done at the same time. Also, if you're concerned about inflation or the S&P 500 being overpriced in the medium term, my three favorite high-yield return indexes for uncertain times are vanguard indexes are Utilities, Consumer Staples, and Healthcare. Utilities are a particularly good bet compared to the market writ large at the moment. I typically give 30% of my portfolio to those three indexes, and 70% to VOO. Though in the current environment I'm considering swapping VOO for some combination VYM, VOOV, or VTV. VFMO has my attention for better times.
I loaded up on VFMO today. Vanguards fund. 20k. Long hold. Spin it up and print!
I don't enough about momentum etfs either but Vanguards momentum etf , VFMO also didn't declines nearly as much as the index did , I think was around 12 % in 2022. I am not exactly sure why both of those momentum etfs seemed to not get hit as hard.
With the recent price reduction to 29bp for their US funds, and monthly rebalancing (a rarity for momo funds, only Vanguard's VFMO which can rebalance daily beats it) makes QMOM an incredible value for concentrated momo. Can hold \~1/2 as much as you'd hold in MTUM to get same momo exposure, leaving room for other funds/strats.
Wouldn’t chasing winners be a momentum fund, like VFMO or QMOM? think OP is talking about chasing high revenue growth
Sounds like you might prefer a momentum strategy. That tends to work reasonably though the turnover is high. ex QMOM, MTUM, VFMO.
VUG holds those particular companies at a higher weight, so you are increasing your exposure by holding it. If you want to reduce your exposure to those particular companies, VTV (a value fund) would make more sense. Or VFMO (a momentum fund) could sell them before they fall too far.
Over the next 20 - value and momentum investing typically. Some ETFs include MTUM, VFMO, QMOM for momentum and AVUV, DFSV, QVAL for value. Could simply allocate 10% to value, 10% to momentum, and 80% to a market fund like VT and be expected to outperform Next year or so - safer cash-like investments, probably
VFMO was included in the comparison. This limits the results to a start date in March of 2018. The point was to see how the three funds compare in their ability to track the academic Momentum factor after-costs. Looking at the funds aside from the factor returns (which QMOM was shown to track more accurately than the others after all costs), there was indeed outperformance from MTUM prior to 2018 when the size effect (MTUM is limited to large caps only, unlike QMOM) gave it a nice headstart that currently persists in the live returns, albeit only slightly. If you look at live returns including VFMO in the comparison, MTUM drops off completely from both a risk-adjusted* and realized returns perspective. This is explained by its limitation to large cap only and the semiannual rebalance methodology rather than QMOM or VFMO's faster quarterly rebalancing. As a result, MTUM took on the worst drawdowns and worst years even when we compare QMOM and MTUM over the full 2016-2022 period. As a last step, let's look at a factor regression. When using a factor regression on the four factor model we find QMOM has a significant 0.68 loading to the Momentum factor (MTUM has a significant 0.37) and a significant 0.76 loading to the Size factor (MTUM has an insignificant -0.02 loading). This aligns with what I said earlier regarding the size effect explaining differences in returns. At the same time, QMOM exhibits positive excess rolling returns over the four-factor model clone of it. However, MTUM has negative excess rolling returns relative to its four-factor model clone. Again, MTUM is not living up to expectations when measured by its ability to track the Fama French factor returns. *It doesn't make sense to compare risk-adjusted returns when looking at an individual fund on its own rather than a holistic strategy fit for your personal situation IMO. That's not what risk-adjusted return measurements are intended for.
Fama French research data is before trading costs. Live fund data is after real live trading costs and expense ratios: Annualized returns (%): 3/2018 to 9/2022 (latest momentum data on Ken French’s website). 5.5 = Fama-French (FF) Large Cap Momentum 5.2 = iShares MSCI US Momentum (MTUM) 8.8 = 50% FF Large Cap Momentum: 50% FF Small Cap Momentum 8.9 = Alpha Architect US Quantitative Momentum ETF (QMOM) 8.2 = Vanguard US Momentum Factor ETF (VFMO)
How an investor implements trend is highly personal to their beliefs. I view it as an additional form of diversification, superior to Emerging Markets diversification due to a higher degree of certainty and lower degrees of risk offered(better investor protections in developed markets). On Momentum fees let's look at the data. FamaFrench data is before trading costs while live fund data accounted for trading costs and expense ratios: Annualized returns (%): 3/2018 to 9/2022 (the latest momentum data on Ken French’s website). 5.5 = Fama-French (FF) Large Cap Momentum 5.2 = iShares MSCI US Momentum (MTUM) 8.8 = 50% FF Large Cap Momentum: 50% FF Small Cap Momentum 8.9 = Alpha Architect US Quantitative Momentum ETF (QMOM) 8.2 = Vanguard US Momentum Factor ETF (VFMO) Then for AQR, a factor investing hedge fund... Annualized return (%): 3/2018 to 8/2022 (the latest momentum index data on the AQR website) 11.1 = 50% FF Large Cap Momentum: 50% FF Small Cap Momentum 11.07 = Alpha Architect US Quantitative Momentum ETF (QMOM) 13.1 = 100% FF Small Cap Momentum 11.0 = AQR US Small Cap Momentum Index
His understanding of Momentum as fully separate from beta is only true if you're willing to take the beta out when it isn't trending upwards. That's what Alpha Architect's VMOT aims to do. Long-only funds like VFMO maintain the same beta exposure and thus maintain much more highly correlated risk to market beta.
It's a bit in the weeds of his posts. [Here](https://www.bogleheads.org/forum/viewtopic.php?t=272007&start=2850) is the consideration for MTUM in taxable. [Here](https://www.bogleheads.org/forum/viewtopic.php?p=5284786#p5284786) is where he ended up going with growth/edv. I'm not doing it purely b/c of him, it's just supportive evidence. VFMO seems better than MTUM to me since it should capture mid and small premiums (it's 1/3 small and 1/3 mid). True that QMOM has outperformed
I don't recall that at all. I think you should check your sources on the Hedgefundie story... Especially since a couple people have tried impersonating him for clicks in the past. Also wouldn't do something just because someone else did it. MTUM's performance is largely due to its size constraint. During a period of large cap outperformance it did wonderfully. When large caps aren't favored, not so. A [quick comparison ](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=QMOM&allocation1_1=100&symbol2=MTUM&allocation2_2=100&symbol3=VFMO&allocation3_3=100) has QMOM beating out the rest by a wide margin. Both YTD and over the full timeframe available.
I like AA a lot. The diversification and ER of VFMO are appealing though. And the fact that it can take new inflows and invest in whatever is trending on a continuum is also appealing. Let’s assume the fund doesn’t close for now. My overall impression is that it would be a safer hold to go 100% VFMO than QMOM
VFMO is like QMOM but with more diversification and lower costs. It's also entirely US based. There is a real risk of fund closure for VFMO as the fifth smallest Vanguard fund overall, and VFLQ's (liquidity factor fund) closure was already announced for later this year. In addition, they recently let the top manager (Antonio Picca, now with Goldman) of the factor funds go and (while they did not change fund methodology) replaced him with a traditional active fund manager. I personally invest my factor investments in Alpha Architect's funds, as they're a growing boutique that bases their entire investment approach around factor investing and are happy to answer questions and meet with individuals 1 on 1 to discuss further etc. They're one of the most evidence-based firms out there imo.
Hey we chatted before about the SS portfolio. I'm now considering just going with mostly VFMO, any thoughts on that one?
20 years out generally pick an ETF with a strategy you believe in to automate it. Some examples: Highly diversified value : AVLV/ AVUV / DFAT / RPV etc. Concentrated Value : QVAL Concentrated Momentum: QMOM Highly diversified Momentum: VFMO Pretty diversified trend following: GMOM / VMOT etc.
It sells the stock after it has risen. It is unknown whether it will rise more. The point is to own stocks that are small, not stocks that were small at one point. It sounds like you are interested in a momentum strategy that buys stocks that have recently been rising in hopes that they will continue rising. VFMO, MTUM, IMTM, XMMO are funds that do that.
Most of them but not all. Check out VCEB or VFMO
I'm assuming you're not holding any bonds since you didn't mention any. Historically (past 90 yrs), corporate bonds outperformed the S&P 500 26% of the time over any 10 year period (one could argue a little skewed by the Great Depression, but you get the idea). Think of it this way: * $BND would be low risk * $VT, $VTI, $VXUS would be moderate risk * Stuff like $VFMO, $VGT, $ARKK, $EMQQ you mentioned are high risk Your current allocation is very risky for a 10 year timeline, especially since you are overweight in stuff that has already had huge recent growth, but it depends on your tolerance. If you can stomach the volatility and the possibility of a big loss near your 10 year mark (requiring a further #x yrs to recover), then power to you.
I am looking to get advise on how aggressive I should be investing into the market. About me: Senior Engineer at FAANG Total Compensation: \~450k depending on stock price on a given year What I currently do Max 401k (19500) Max IRA and do Backdoor Roth (6000) Max HSA and invest it, paying for health costs out of pocket \~50k in individual brokerage account across VFMO, VGT, VOO, VTI, and VXF with some ARKK I mostly have VTSAX, VOO, and VTI for my 401k/IRA/HSA. What I want to do is invest the remainder of my cash into the market each month, to further accumulate wealth. With all said and done, I have about $5000 each month that I just toss into savings. I am fine with house payment, and have a 6 month emergency fund. Is it reasonable to just continue to dollar cost average into ETFs like VOO, VTI, VFMO, VGT, and ARKK (what I hold in my individual brokerage) the $5000 a month? And before you say it, no I don't want to do a Mega Backdoor Roth as I like the idea of being able to access these funds at any time and cash out the long term gains for fun purchases even if the tax incentive is not as much. TLDR; Is it wise to put $5,000 a month into the market instead of savings after maxing 401k/IRA/HSA?
I am looking to get advise on how aggressive I should be investing into the market. About me: Senior Engineer at FAANG Total Compensation: ~450k depending on stock price on a given year What I currently do * Max 401k (19500) * Max IRA and do Backdoor Roth (6000) * Max HSA and invest it, paying for health costs out of pocket ~50k in individual brokerage account across VFMO, VGT, VOO, VTI, and VXF with some ARKK I mostly have VTSAX, VOO, and VTI for my 401k/IRA/HSA. What I want to do is invest the remainder of my cash into the market each month, to further accumulate wealth. With all said and done, I have about $5000 each month that I just toss into savings. I am fine with house payment, and have a 6 month emergency fund. Is it reasonable to just continue to dollar cost average into ETFs like VOO, VTI, VFMO, VGT, and ARKK (what I hold in my individual brokerage) the $5000 a month? And before you say it, no I don't want to do a Mega Backdoor Roth as I like the idea of being able to access these funds at any time and cash out the long term gains for fun purchases even if the tax incentive is not as much. TLDR; Is it wise to put $5,000 a month into the market instead of savings after maxing 401k/IRA/HSA?
Quality: QUAL IQLT, VFQY, BTAL Equity Momentum: MTUM, IMTM, VFMO Futures Momentum: CSAAX, PQTAX, AHLPX
I'm not really sure myself for the US, VFMO and QMOM are good options, for international IMTM or IMOM. QMOM and IMOM are more concentrated(50 stocks equal weighted) and more expensive but you get higher momentum exposure with them. VFMO seems to be a really good overall momentum fund and pretty cheap. IMTM seems kinda ok.
Momentum/growth are not the same. Momentum can be in growth for some periods. But it can also be in value, whatever performed better in the 12-2 months timeframe. I'm currently considering adding a bit of momentum funds to the portfolio, but probably not much and I'm not sure about QMOM or VFMO and IMOM or IMTM yet. Avantis already implements "opportunistic momentum" because they will wait to buy a security with negative momentum and will also wait to sell a security with positive momentum. It is hard to tell how much moment this will capture in the long run.
I just found out that Vanguard has a Momentum ETF (VFMO), a cheaper alternative to MTUM for those interested. The volume on VFMO is low but its a relatively young ETF
This is oversimplified but I would take a look at 50/200 day moving averages before buying. You bought into hot equities, and there seems to be a tendency for these to correct. You can also look up reviews of VFMO and MTUM to learn about arguments against momentum investing. Finding companies/sectors/indices that you believe in is step 1, waiting until they are on sale is step 2. I believe in Amazon, Netflix, semiconductors - but these are heavily bought. Until there is a better entry point for those specific equities, I’m adding positions on S&P500 etf [moving averages](https://www.investopedia.com/ask/answers/013015/why-200-simple-moving-average-sma-so-common-traders-and-analysts.asp) FYI, VCR has a significant holding of Tesla.