VFMF vs VFQY
Vanguard US Multifactor ETF vs Vanguard US Quality Factor ETF
Which is better, VFMF or VFQY?
Nearly the same fund. VFQY costs less.
VFQY has a lower expense ratio. VFMF led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. VFMF is less concentrated, with 9.2% of the fund in its ten largest positions against 13.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VFMF | VFQY |
|---|---|---|
| Expense Ratio | 0.18% | 0.13%Best |
| AUM | $1.1B | $493M |
| Dividend Yield | 1.44% | 1.04% |
| Holdings | 655 | 452 |
| YTD Return | +20.44%Best | +12.43% |
| 1Y Return | +27.58%Best | +15.57% |
| 3Y Return (annualized) | +22.35%Best | +16.23% |
| 5Y Return (annualized) | +13.91%Best | +8.77% |
| Volatility (annualized) | 18.5% | 18.1%Best |
| Max Drawdown | -41.3% | -37.4%Best |
| $10,000 over 5 years | $19,178Best | $15,225 |
| Top 10 Weight | 9.2%Best | 13.1% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Mid Cap Blend |
| Inception | Feb 13, 2018 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Oct 14, 2026 (8.7 years).
VFMF vs VFQY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.7 years both funds cover.
VFMF vs VFQY Performance
Vanguard US Multifactor ETF (VFMF) is an ETF from Vanguard (US) and Vanguard US Quality Factor ETF (VFQY) is an ETF from Vanguard (US). Over the past year VFMF returned +27.58% while VFQY returned +15.57%. Year to date, VFMF is up 20.44% versus a gain of 12.43% for VFQY.
Over three years, VFMF compounded at +22.35% per year against +16.23% for VFQY; over five years the annualized figures are +13.91% and +8.77% respectively. Across the full 9-year window we track, VFMF has the edge at +12.22% annualized vs +11.20%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMF has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 18.1% for VFQY. 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 -41.3% for VFMF and -37.4% for VFQY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFMF charges 0.18% per year while VFQY charges 0.13%. On a $10,000 position that is $18 vs $13 annually, a gap of $5 per year that compounds over a long holding period. On income, VFMF currently yields 1.44% against 1.04% for VFQY.
Holdings Overlap
47.4% of VFMF's money is in holdings VFQY also owns. 65.3% of VFQY's money is in holdings VFMF also owns.
The two portfolios partly overlap.
288 positions in common, counted across the 654 positions we hold weights for in VFMF and 469 in VFQY, against full books of 655 and 452.
What only one of them owns
Our book lists 176 positions for VFQY that do not appear in our book for VFMF (33.9% of the fund), and 349 for VFMF that do not appear in VFQY (51.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VFMF | Weight in VFQY | Difference |
|---|---|---|---|
| GILDGilead Sciences | 0.74% | 1.45% | 0.71% |
| FTNTFortinet Inc | 0.53% | 1.49% | 0.96% |
| NEMNewmont Corp Common | 0.95% | 1.05% | 0.10% |
| VLOValero Energy | 1.03% | 0.93% | 0.10% |
| TRVThe Travelers Cos, Inc. | 0.87% | 1.06% | 0.19% |
| ROSTRoss Stores, Inc. | 0.60% | 1.24% | 0.64% |
| WDCWestern Digital Corp. | 0.60% | 1.17% | 0.57% |
| LRCXLam Research Corp | 0.41% | 1.33% | 0.92% |
| AAPLApple, Inc | 0.35% | 1.29% | 0.94% |
| ADBEAdobe Systems | 0.53% | 1.10% | 0.57% |
65.3% of VFQY is already inside VFMF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VFMF or VFQY?
VFMF has an expense ratio of 0.18% while VFQY charges 0.13%. VFQY is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VFMF or VFQY?
Over the past year VFMF returned +27.58% vs +15.57% for VFQY, so VFMF leads on 1-year performance. Over the longest common window we track (9 years), VFMF annualized +12.22% vs +11.20% for VFQY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFMF or VFQY?
VFMF has been the more volatile fund at 18.5% annualized versus 18.1% for VFQY. Worst drawdown: VFMF -41.3% vs VFQY -37.4%.
Should I hold both VFMF and VFQY?
VFMF and VFQY have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VFMF and VFQY?
65.3% of VFQY's money is in holdings VFMF also owns. 65.3% of VFQY's is in holdings VFMF also owns. They hold 288 positions in common, counted across the 654 positions we hold weights for in VFMF and 469 in VFQY.
Which pays a higher dividend, VFMF or VFQY?
VFMF yields 1.44% while VFQY yields 1.04%, so VFMF currently pays the higher dividend yield.
Is VFQY better than VFMF?
VFQY has a lower expense ratio. VFMF led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. VFMF is less concentrated, with 9.2% of the fund in its ten largest positions against 13.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.