You'd Be Surprised Which Four Vanguard ETFs Have Consistently Beaten Their Category Averages

seekingalpha02-18

Most investors have never heard of so-called "factor funds" but four of five such Vanguard factor funds have outperformed Vanguard ETFs of similar composition.Factor funds focus on portfolios that ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nYou'd Be Surprised Which Four Vanguard ETFs Have Consistently Beaten Their Category Averages\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-18 14:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4671210-youd-be-surprised-which-four-vanguard-etfs-have-consistently-beaten-their-category-averages><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most investors have never heard of so-called \"factor funds\" but four of five such Vanguard factor funds have outperformed Vanguard ETFs of similar composition.Factor funds focus on portfolios that ...</p>\n\n<a href=\"https://seekingalpha.com/article/4671210-youd-be-surprised-which-four-vanguard-etfs-have-consistently-beaten-their-category-averages\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FT_SY_ES","symbol_name":"SP500指数","start_time":0,"source_url":"https://seekingalpha.com/article/4671210-youd-be-surprised-which-four-vanguard-etfs-have-consistently-beaten-their-category-averages","article_id":"2412959780","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2412959780","pubTimestamp":1708236863,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Well, based on performance over the last five years, one should certainly give these ETFs a look. The best way to show why is by comparing the returns for each of these funds with the returns of their passive Vanguard ETF index funds of the same category. Morningstar.com classifies all funds in terms of each's portfolio composition. We want to see which of each of the factor funds, shown below in bold, has returns better than just investing in the similar Vanguard ETF choices. Here are the results through 2/14/24:   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Momentum Factor ETF  21.42 21.26 3.62 14.29   Vanguard Mid-Cap Growth ETF  12.86 12.80 -0.27 11.04   Click to enlarge Note 1: All multi-year returns in this article are annualized. Note: 2: All returns, also shown in bold type, did better than a similar unmanaged Vanguard fund of the same category over that period.   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Van","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SPXU":"三倍做空标普500ETF","SH":"标普500反向ETF","VFMF":"Vanguard US Multifactor ETF","VOT":"Vanguard Mid-Cap Growth ETF","OEF":"标普100指数ETF-iShares","OEX":"标普100",".SPX":"S&P 500 Index","BK4559":"巴菲特持仓","VFMO":"Vanguard U.S. Momentum Factor ETF","IVV":"标普500指数ETF","FSMD":"Fidelity Small-Mid Multifactor ETF","VFMV":"Vanguard U.S. Minimum Volatility ETF","BK4588":"碎股","BK4550":"红杉资本持仓","SPY":"标普500ETF","FDLO":"Fidelity Low Volatility Factor ETF","VFQY":"Vanguard U.S. Quality Factor ETF","FQAL":"Fidelity Quality Factor ETF","VFVA":"Vanguard U.S. Value Factor","BK4581":"高盛持仓","FDMO":"Fidelity Momentum Factor ETF","BK4504":"桥水持仓","FDN":"First Trust Dow Jones Internet I","VFLQ":"Vanguard US Liquidity Factor ETF","VO":"Vanguard Mid-Cap ETF","VOE":"Vanguard Mid-Cap Value ETF","VTI":"大盘指数ETF-Vanguard MSCI","FLRG":"Fidelity U.S. Multifactor ETF","FVAL":"Fidelity Value Factor ETF","UPRO":"三倍做多标普500ETF","SDS":"两倍做空标普500ETF","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","VOO":"Vanguard标普500ETF","SSO":"两倍做多标普500ETF"},"translate_title":"你会惊讶哪四只先锋ETF一直超过其类别平均水平","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FLRG":1,"SPY":1,"VFLQ":1,"VFMF":1,"VFMO":1,"FVAL":1,"VFMV":1,"FSMD":1,"FQAL":1,"FDMO":1,"FDLO":1,"VFQY":1,"VFVA":1,"VO":1,"VOE":1,"VOO":1,"VOT":1,"VTI":1,"FDN":0.9,"OEX":0.6,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,".SPX":0.6,"OEF":0.6,"IVV":0.6,"ESmain":0.6},"content_text":"Most investors have never heard of so-called \"factor funds\" but four of five such Vanguard factor funds have outperformed Vanguard ETFs of similar composition.Factor funds focus on portfolios that have stocks with past characteristics such as momentum, quality, and low volatility.Outperformance has been consistent since inception, except for a fund with a focus on low volatility.   tumsasedgars/iStock via Getty Images The belief currently has taken hold among many investors that since index funds frequently come out ahead of actively managed funds, which is mainly where investors should be placing their money. As a result, investors are moving more and more of their money to passively managed ETFs (and mutual funds) as compared to actively managed ones. In fact, assets in passive investments now top those in active funds for the first time. See this article for details. While investments in the S&P 500 and the total stock market, such as SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market Index Fund ETF (VTI), and Vanguard S&P 500 ETF (VOO) are the ETF investment giants in the room, investors seeking additional diversification, potential outperformance, or reduced risk often turn to stock investments in other areas. Such investors usually have strong hunches that the above unmanaged investments could be overvalued or could be outperformed by various other market categories under the guidance of knowledgeable fund managers. Such alternate categories might include funds with a quality focus, or those that have a history of profiting from momentum. In fact, researchers have identified at least four favorable characteristics of stocks to assemble into fund portfolios: value, momentum, quality, and minimum volatility. Vanguard currently has a line-up of five such so-called \"factor\" funds. Should you invest in such funds? Well, based on performance over the last five years, one should certainly give these ETFs a look. The best way to show why is by comparing the returns for each of these funds with the returns of their passive Vanguard ETF index funds of the same category. Morningstar.com classifies all funds in terms of each's portfolio composition. We want to see which of each of the factor funds, shown below in bold, has returns better than just investing in the similar Vanguard ETF choices. Here are the results through 2/14/24:   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Momentum Factor ETF (VFMO) 21.42 21.26 3.62 14.29   Vanguard Mid-Cap Growth ETF (VOT) 12.86 12.80 -0.27 11.04   Click to enlarge Note 1: All multi-year returns in this article are annualized. Note: 2: All returns, also shown in bold type, did better than a similar unmanaged Vanguard fund of the same category over that period.   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Quality Factor ETF (VFQY) 12.10 15.33 7.06 11.89   Vanguard Mid-Cap Index Fund ETF (VO) 10.49 7.12 3.07 10.05   Click to enlarge   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Multifactor ETF (VFMF) 12.08 13.85 10.38 11.49   Vanguard Mid-Cap Index Fund ETF (VO) 10.49 7.12 3.07 10.05   Click to enlarge   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Minimum Volatility ETF (VFMV) 7.31 9.35 6.44 7.93   Vanguard Mid-Cap Index Fund ETF (VO) 10.49 7.12 3.07 10.05   Click to enlarge   Fund/Category 3 mo. Return 1-Year Return 3-Year Return 5-Year Return   Vanguard U.S. Value Factor ETF (VFVA) 9.78 4.63 10.69 10.95   Vanguard Mid-Cap Value Index Fund ETF (VOE) 8.32 2.04 6.39 8.64   Click to enlarge As you can see, each factor fund, except VFMV, outperformed its more widely known ETF counterpart, regardless of the time period considered, but especially over the last one and three years. Altogether, five years may be a sufficiently long time period that one may have considerable confidence that the consistent outperformance was not merely a fluke. Yet Vanguard factor funds have attracted only a small amount of investor assets. Does this suggest that Vanguard may shut these funds down just like they shut down an earlier factor fund, Vanguard U.S. Liquidity Factor ETF (VFLQ) in spite of decent performance? Apparently, investors have not yet discovered these funds. Perhaps readers of this article should check them out and strongly consider investing in them, especially if the bulk or all of your investments are in the four investment giant funds mentioned at the start of this article.  Other investment companies also have factor funds. For example, Fidelity Investments has Fidelity Low Volatility Factor ETF (FDLO) Fidelity Momentum Factor ETF (FDMO) Fidelity Quality Factor ETF (FQAL) Fidelity Small-Mid Multifactor ETF (FSMD), Fidelity U.S. Multifactor ETF (FLRG), and Fidelity Value Factor ETF (FVAL). In general, these Fidelity funds have not been as successful as the Vanguard factor funds.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.3","shortVersion":"4.28.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2412959780"}