VFH — Vanguard Financials Index Fund ETF Shares

VFH Price Performance — Growth of $10,000

Value of a $10,000 investment in VFH over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.

VFH Drawdown

The "underwater" chart: VFH's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.

Overview

Vanguard Financials Index Fund ETF Shares (VFH) is a financial sector ETF issued by Vanguard, tracking the performance of the financial industry. With an overall rank of #228 out of 458 tracked ETFs, it is positioned in the middle of the pack. The fund has an expense ratio of 0.09%, which is relatively low, and a dividend yield of 1.67%, providing a modest income stream for investors. The fund's price stands at $140.72, and it has $14.9 billion in assets under management (AUM), indicating a moderate level of investor adoption and size in the market.

Over the past year, VFH has delivered a return of 11.01%, with a more pronounced performance in the longer-term, showing a 3-year return of 80.06%. The 1-month return of 3.02% and the 1-week return of -1.34% suggest some short-term volatility, but the 1-day return of +1.02% indicates a relatively stable daily performance. The trend shows a steady increase in returns over the 1-month, 3-month, and 6-month periods, with a slight deceleration in the 1-year return. This pattern suggests a mix of short-term fluctuations and a positive long-term trend.

VFH is labeled as having low volatility, with a beta of 0.80, indicating that it tends to move less than the overall market. The Sharpe ratio of 0.40 suggests a moderate risk-adjusted return, meaning that the fund provides a reasonable return for the level of risk taken. The maximum drawdown of -17.30% indicates that the fund has experienced a significant decline in value at one point, but it has recovered from this decline. This combination of low volatility, a moderate Sharpe ratio, and a manageable drawdown suggests that VFH is suitable for investors who are looking for a stable investment with a balanced risk profile in the financial sector.

AI-generated summary based on the data on this page.

VFH Top Holdings

Holdings as of 2026-05-31 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 46.1% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how VFH's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.

Which Funds Overlap With VFH

Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with VFH's top 10 — XLF overlaps most, holding 9 of the same companies as VFH's top 10 (42.4% of VFH's assets).

Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.

Market Backdrop

10-Year Treasury Yield: 4.69% (as of 2026-08-20) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 16.01 (as of 2026-08-20) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-07-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

VFH Liquidity, Domicile & Tax Treatment

Liquidity: Quoted bid/ask spread is 0.80% and average daily volume is 550K/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $14.9B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.

Domicile & tax treatment: VFH is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.

VFH Performance History

How VFH Compares to Other Financial ETFs