Targeting the liquidity factor

April 20, 2018 (Updated July 20, 2018)


Vanguard U.S. Liquidity Factor ETF (VFLQ) is the first of its kind: No other ETF or mutual fund explicitly targets the liquidity factor. But how does VFLQ work?

Frank Chism, a senior product manager in Vanguard Portfolio Review Department, and Antonio Picca, head of Factor-Based Strategies in Vanguard Quantitative Equity Group, discuss VFLQ's approach to targeting liquidity in a 3-minute video.

Watch the factor webcast replay

For more insights and details on factors and our new factor products, watch the full webcast replay or visit The Factor Center.


  • All investing is subject to risk, including the possible loss of the money you invest.
  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
  • Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
  • Factor funds are subject to investment style risk, which is the chance that returns from the types of stocks in which the fund invests will trail returns from the stock markets. Factor funds are subject to manager risk, which is the chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.


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