Recently, the flux modulation has been presented to deal with the 1/f noise of magnetoresistive (MR) sensors. However, the efficiency of most flux modulation schemes with simple micro- electromechanical-system (MEMS) actuators is not satisfying yet. In this paper, the vertical motion flux modulation (VMFM) is proposed to improve the modulation efficiency. In VMFM, the soft magnetic film driven by a MEMS actuator vibrates vertically above the MR sensors with a pair of flux concentrators. Consequently, the detected magnetostatic field is modulated to the higher frequency where the 1/f noise is much lower. A VMFM prototype based on AA002 (multi-layered giant magnetoresistive sensors) was fabricated and its flux modulation efficiency can reach 18.7%, which exceeds most achieved efficiency with other schemes. Also, the magnetostatic detection ability is improved to 530 pT/√Hz.