Meet the Magnificent Vanguard ETF Obliterating the S&P 500 in 2026 Because of Its Unique Momentum-Driven Strategy

The Vanguard U.S. Momentum Factor ETF (VFMO) has returned 24% in 2026, more than double the S&P 500's return, by using a rules-based strategy that buys stocks with sustained upward momentum over the last 12 months. Since its 2018 inception, the ETF has delivered a compound annual return of 15.7%, consistently beating the S&P 500's 12.7% average annual return. The strategy automatically identifies winning stocks across sectors without requiring investor guesswork.