Vanguard U.S. Multifactor ETF(AMEX:VFMF)

VFMF belongs to Vanguards suite of actively-managed factor-based funds. Rather than focusing solely on one factor, the fund evaluates US companies of all capitalization for their exposure to four factors: value, momentum, quality and low volatility. Value is measured by low security prices relative to fundamentals, momentum is measured by strong recent relative performance, and quality is measured by strong company fundamentals. Although VFMF is actively managed, a rules-based process is used to determine the funds constituents. After removing the most volatile stocks, VFMFs advisor selects and weights securities, grouped by market cap, based on a ranking determined by combined value, momentum, and quality scores.