Meet the Magnificent Momentum-Driven ETF Obliterating the S&P 500 in 2026

The Vanguard U.S. Momentum Factor ETF (VFMO) is outperforming the S&P 500 in 2026, returning 18.5% year-to-date as of the market close Thursday, Sept. 10, versus the S&P 500’s 10.9% gain. Launched in 2018, the fund has beaten the benchmark in every year on average, according to the article, using models that select stocks trending higher and weighting those with sustained 12-month performance while also checking the six-month momentum. As of Sept. 9, it held 697 stocks across nine sectors, with technology the largest exposure. The ETF includes holdings such as SanDisk, Micron Technology, Dell Technologies, AMD, Intel, and Applied Materials.