Vanguard Enters The Factor Thunderdome

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rudiger
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Vanguard Enters The Factor Thunderdome

Post by rudiger » Thu Feb 15, 2018 8:58 am

Vanguard is rolling out their low-cost, factor-based ETFs today. There are five single-factor funds and one multi-factor fund:
  • Vanguard U.S. Liquidity Factor ETF (VFLQ)
  • Vanguard U.S. Momentum Factor ETF (VFMO)
  • Vanguard U.S. Minimum Volatility ETF (VFMV)
  • Vanguard U.S. Quality Factor ETF (VFQY)
  • Vanguard U.S. Value Factor ETF (VFVA)
  • Vanguard U.S. Multifactor ETF (VFMF)
Here's an article on the launch of these new funds: http://www.etf.com/sections/features-an ... hunderdome

The multi-factor fund looks especially interesting. It combines momentum, quality, and value. Anyone planning to invest?
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jhogue
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Re: Vanguard Enters The Factor Thunderdome

Post by jhogue » Thu Feb 15, 2018 9:24 am

Doesn't this belong in the Variable Portfolio Discussion section?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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rudiger
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Re: Vanguard Enters The Factor Thunderdome

Post by rudiger » Fri Mar 09, 2018 11:25 am

jhogue wrote:Doesn't this belong in the Variable Portfolio Discussion section?
I don't know. These ETFs are broadly diversified and could conceivably replace the S&P 500 or TSM allocation of the Permanent Portfolio. That is, if you believe in the factors' outperformance over the long-term.
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