4 min read
By Ron Koren, ETF Insider


Exchange-Traded Funds (ETFs) have become a cornerstone of modern investment portfolios, offering investors diverse exposure to various market sectors and asset classes. In this article, we'll conduct an in-depth comparison between two prominent ETFs: DWAS (Invesco DWA SmallCap Momentum ETF) and VFMO (Vanguard U.S. Momentum Factor ETF). We'll analyze critical factors such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

DWAS Vs VFMO: Overview

DWAS and VFMO are two ETFs with distinct investment strategies, both focused on momentum factors in the U.S. equity market. DWAS emphasizes small-cap stocks demonstrating strong momentum, while VFMO seeks to capture momentum within the broader U.S. equity universe. Understanding their contrasting approaches is essential for informed investment decisions.

DWAS Vs VFMO: Sectors and Top Holdings

The DWAS ETF concentrates on small-cap companies across various sectors, such as industrials, technology, and healthcare. Some of its top holdings include names like Enphase Energy, Crocs, and Generac Holdings. In contrast, VFMO encompasses a broader spectrum of sectors, including consumer discretionary, technology, and healthcare, with top holdings like Apple, Microsoft, and Amazon. Evaluating sectors and top holdings provides insights into each ETF's diversification and exposure.


DWAS Vs VFMO: Capitalization and Investment Strategy

DWAS's AUM underscores its popularity among investors interested in small-cap momentum. Its investment strategy seeks to harness the growth potential of smaller companies exhibiting strong momentum signals. VFMO, with a larger AUM, focuses on a broader universe of momentum stocks, employing a rules-based approach. Differing capitalizations and strategies impact the risk-return profiles of these ETFs, requiring careful consideration.

DWAS Vs VFMO: Tracking Methods and Exposure

DWAS tracks an index that identifies small-cap U.S. stocks with strong relative performance characteristics. Its exposure to the momentum factor in the small-cap space aligns with its investment objective. VFMO, on the other hand, tracks an index composed of U.S. large-cap and mid-cap stocks that exhibit momentum. Recognizing the tracking methodologies and exposure parameters aids investors in selecting the ETF that aligns with their investment goals.


DWAS and VFMO offer distinct avenues for investors seeking exposure to momentum factors within the U.S. equity market. Their contrasting focuses on small-cap and broader-market momentum provide options for different risk appetites and investment objectives. For individuals interested in delving deeper into the intricacies of ETF holdings, correlations, overlaps, and other valuable insights, ETF Insider presents an invaluable tool. With its user-friendly application, ETF Insider empowers investors with comprehensive information about these ETFs and other financial instruments.

Disclaimer: This article does not offer any investment advisory services.


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  • Why is DWAS better than VFMO?

    DWAS may be considered better than VFMO for some investors due to its specific focus, offering diversification.

  • Does VFMO beat DWAS?

    VFMO's performance relative to DWAS will vary over time, depending on market conditions.

  • Should I invest in DWAS or VFMO?

    The choice between DWAS and VFMO should align with your investment goals, risk tolerance, and desired exposure.

  • Are DWAS and VFMO good investments?

    Both DWAS and VFMO can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between DWAS and VFMO?

    The correlation between DWAS and VFMO can vary over time, reflecting differences in performance.