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Should You Invest in the Vanguard Financials Index Fund ETF Shares (VFH)?
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Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the Vanguard Financials Index Fund ETF Shares (VFH - Free Report) , a passively managed exchange traded fund launched on January 26, 2004.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $13.37 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. VFH seeks to match the performance of the MSCI US Investable Market Financials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index (IMI)/Financials 25/50 measures the investment return of stocks in the financial sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.71%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 10.42% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Visa Inc (V).
Performance and Risk
The ETF has added about 4.13% and is up about 9.89% so far this year and in the past one year (as of 11/02/2026), respectively. VFH has traded between $117 and $143.09 during this last 52-week period.
The ETF has a beta of 0.91 and standard deviation of 16.44% for the trailing three-year period, making it a medium risk choice in the space. With about 426 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Financials Index Fund ETF Shares carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VFH is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
iShares U.S. Financials ETF (IYF) tracks Dow Jones U.S. Financials Index and the State Street Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. iShares U.S. Financials ETF has $3.73 billion in assets, State Street Financial Select Sector SPDR ETF has $52.10 billion. IYF has an expense ratio of 0.37%, and XLF charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Vanguard Financials Index Fund ETF Shares (VFH)?
Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the Vanguard Financials Index Fund ETF Shares (VFH - Free Report) , a passively managed exchange traded fund launched on January 26, 2004.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $13.37 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. VFH seeks to match the performance of the MSCI US Investable Market Financials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index (IMI)/Financials 25/50 measures the investment return of stocks in the financial sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.71%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.
Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 10.42% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Visa Inc (V).Performance and Risk
The ETF has added about 4.13% and is up about 9.89% so far this year and in the past one year (as of 11/02/2026), respectively. VFH has traded between $117 and $143.09 during this last 52-week period.
The ETF has a beta of 0.91 and standard deviation of 16.44% for the trailing three-year period, making it a medium risk choice in the space. With about 426 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Financials Index Fund ETF Shares carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VFH is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
iShares U.S. Financials ETF (IYF) tracks Dow Jones U.S. Financials Index and the State Street Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. iShares U.S. Financials ETF has $3.73 billion in assets, State Street Financial Select Sector SPDR ETF has $52.10 billion. IYF has an expense ratio of 0.37%, and XLF charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.