VFQY ETF

Make sure you don't overlook these two ETFs.

The Vanguard U.S. Quality Factor ETF has a varied portfolio that includes different market cap sizes and acts like a value fund with a low price-to-earnings ratio. However, VFQY has underperformed compared to the overall market and other quality ETFs, showing more volatility than anticipated. Even though it has appealing valuations and a special screening method, VFQY has not provided better returns than 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.