VFMO: Momentum Investing Is Flourishing, But Consider SPMO Or MTUM

  • Momentum investing is well-positioned for strong returns as the S&P 500 uptrend continues, supported by earnings growth and expected rate cuts. Vanguard U.S. Momentum Factor ETF is too diversified, limiting its upside and underperforming both the S&P 500 and peer momentum ETFs. SPMO and MTUM are better momentum ETF options, with higher concentration in mega-cap growth stocks and superior recent performance and risk profiles.