VFQY ETF

Don't let these two ETFs slip through the cracks.

The Vanguard U.S. Quality Factor ETF has a diversified portfolio across market cap categories, resembling a value fund with a low price/earnings ratio. VFQY's performance has lagged the broader market and other quality ETFs, with higher volatility measures than expected. Despite attractive valuations and a unique screening model, VFQY has not delivered higher returns relative to the market.

The Vanguard U.S. Quality Factor ETF is allocated based on specific criteria. The fund is heavily weighted in the consumer discretionary, industrial, and technology sectors.

The Vanguard U.S. Quality Factor ETF is an actively managed fund that invests in more than 300 stocks with solid fundamentals. VFQY is diversified across various holdings, sectors, and sizes. Overall performance indicators are positive, with a focus on value investing while still maintaining growth potential.

Vanguard U.S. Quality Factor ETF is an actively managed fund that evaluates companies based on factors indicative of high-quality earnings. Quality factor has historically outperformed other factors. VFQY has a more attractive valuation, and uses more robust metrics for security selection compared to its peers.

Quality stocks are shining in a slowing economy, as they have strong balance sheets and low default risk. The recent drop in interest rates is a tailwind for value and small-cap stocks. Vanguard U.S. Quality Factor ETF has been the best-performing quality ETF over the past month, thanks to its value and small-cap tilt.