(VFMF) U.S. Multifactor Fund - Overview

The Vanguard U.S. Multifactor Fund (BATS: VFMF) targets U.S. common stocks that exhibit strong recent price momentum, solid fundamentals, and attractive valuation relative to those fundamentals, aiming to outperform the broad U.S. equity market. The strategy mandates that at least 80 % of assets be allocated to securities issued by U.S. companies, positioning the fund squarely within the Mid-Cap Value segment.

Key quantitative details (as of Q3 2024): • Expense ratio ≈ 0.12 % – well below the industry median for actively-managed multifactor ETFs. • Assets under management (AUM) ≈ $7.5 bn, reflecting steady inflows driven by investor demand for factor-tilted value exposure. • 12-month trailing return ≈ 9.8 % vs. S&P 500 ≈ 7.5 %, indicating a modest outperformance in a rising-rate environment.

Macro-economic drivers that can materially affect the fund’s performance include: • The Federal Reserve’s policy stance – higher rates tend to pressure growth-oriented stocks, which can benefit value-oriented mid-caps with stronger cash flows. • U.S. GDP growth forecasts (≈ 2.1 % annualized for 2025) – slower expansion may accentuate the relative appeal of companies with durable earnings and lower price-to-earnings multiples. • Sector weighting – the fund typically leans toward industrials, financials, and consumer discretionary, sectors that are sensitive to credit conditions and consumer spending trends.

For a deeper, data-driven look at VFMF’s factor exposures and risk profile, the ValueRay platform provides a free, interactive snapshot worth exploring.