FXU vs. VFH

Last updated Jun 13, 2026

FXU (First Trust Utilities AlphaDEX Fund) and VFH (Vanguard Financials ETF) are both exchange-traded funds - FXU is a Utilities Equities fund tracking the StrataQuant Utilities Index, while VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 10 years, FXU returned 9.38%/yr vs 13.15%/yr for VFH. A 0.51 correlation means they provide meaningful diversification when combined. FXU charges 0.62%/yr vs 0.09%/yr for VFH.

Performance

FXU vs. VFH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Utilities AlphaDEX Fund (FXU) and Vanguard Financials ETF (VFH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXU achieves a 8.19% return, which is significantly higher than VFH's -1.58% return. Over the past 10 years, FXU has underperformed VFH with an annualized return of 9.38%, while VFH has yielded a comparatively higher 13.15% annualized return.

FXU

• 1D: 0.87%
• 1M: 0.66%
• YTD: 8.19%
• 6M: 8.80%
• 1Y: 17.67%
• 3Y*: 17.64%
• 5Y*: 11.71%
• 10Y*: 9.38%

VFH

• 1D: 1.34%
• 1M: 4.13%
• YTD: -1.58%
• 6M: -1.74%
• 1Y: 9.92%
• 3Y*: 19.69%
• 5Y*: 9.36%
• 10Y*: 13.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FXU vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXU First Trust Utilities AlphaDEX Fund	8.19%	21.86%	22.50%	-2.12%	3.68%	17.67%	1.53%	11.67%	5.43%	0.98%
VFH Vanguard Financials ETF	-1.58%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%

Correlation

The correlation between FXU and VFH is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.51

Over the past year, the correlation between FXU and VFH has dropped to 0.23 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.

FXU vs. VFH - Sectors Allocation Comparison

Sectors	FXU	VFH
Utilities	92.0%	-
Industrials	4.2%	0.2%
Energy	3.7%	-
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Financial Services	-	96.8%
Healthcare	-	0.1%
Real Estate	-	0.8%
Technology	-	2.1%

Return for Risk

FXU vs. VFH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FXU

FXU Risk / Return Rank: 39
FXU Sharpe Ratio Rank: 40
FXU Sortino Ratio Rank: 37
FXU Omega Ratio Rank: 36
FXU Calmar Ratio Rank: 44
FXU Martin Ratio Rank: 37

VFH

VFH Risk / Return Rank: 17
VFH Sharpe Ratio Rank: 18
VFH Sortino Ratio Rank: 17
VFH Omega Ratio Rank: 17
VFH Calmar Ratio Rank: 16
VFH Martin Ratio Rank: 16

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FXU vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Utilities AlphaDEX Fund (FXU) and Vanguard Financials ETF (VFH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FXU	VFH	Difference
Sharpe ratio: Return per unit of total volatility	1.26	0.51	+0.75
Sortino ratio: Return per unit of downside risk	1.75	0.78	+0.97
Omega ratio: Gain probability vs. loss probability	1.21	1.10	+0.12
Calmar ratio: Return relative to maximum drawdown	1.93	0.52	+1.41
Martin ratio: Return relative to average drawdown	5.17	1.35	+3.82

FXU vs. VFH - Sharpe Ratio Comparison

The current FXU Sharpe Ratio is 1.26, which is higher than the VFH Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of FXU and VFH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FXU vs. VFH - Drawdown Comparison

The maximum FXU drawdown since its inception was -49.00%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for FXU and VFH.

Drawdown Indicators

	FXU	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-49.00%	-78.61%	+29.61%
Max Drawdown (1Y) Largest decline over 1 year	-8.63%	-14.75%	+6.12%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	-17.30%	-0.16%
Max Drawdown (5Y) Largest decline over 5 years	-21.87%	-25.66%	+3.79%
Max Drawdown (10Y) Largest decline over 10 years	-34.81%	-44.42%	+9.61%
Current Drawdown Current decline from peak	-5.57%	-4.57%	-1.00%
Average Drawdown Average peak-to-trough decline	-7.63%	-18.52%	+10.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.22%	5.65%	-2.43%

Volatility

FXU vs. VFH - Volatility Comparison

First Trust Utilities AlphaDEX Fund (FXU) has a higher volatility of 5.01% compared to Vanguard Financials ETF (VFH) at 4.33%. This indicates that FXU's price experiences larger fluctuations and is considered to be riskier than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXU	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.01%	4.33%	+0.68%
Volatility (6M) Calculated over the trailing 6-month period	10.33%	11.41%	-1.08%
Volatility (1Y) Calculated over the trailing 1-year period	13.30%	15.06%	-1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	19.34%	-2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.34%	22.55%	-4.21%

FXU vs. VFH - Expense Ratio Comparison

FXU has a 0.62% expense ratio, which is higher than VFH's 0.09% expense ratio.

Dividends

FXU vs. VFH - Dividend Comparison

FXU's dividend yield for the trailing twelve months is around 2.16%, more than VFH's 1.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXU First Trust Utilities AlphaDEX Fund	2.16%	2.29%	2.41%	2.52%	2.03%	2.00%	3.97%	2.34%	2.40%	3.81%	2.62%	3.90%
VFH Vanguard Financials ETF	1.48%	1.55%	1.75%	2.08%	2.31%	1.87%	2.21%	2.17%	2.30%	1.53%	1.63%	2.00%

Frequently Asked Questions

Can I hold both FXU and VFH in my portfolio?

FXU and VFH have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXU or VFH?

FXU has higher volatility (5.01%) compared to VFH (4.33%). In terms of maximum drawdown, FXU dropped -49.00% vs VFH's -78.61%.

Which ETF is better, FXU or VFH?

On 10-year performance, VFH leads with 13.15% vs 9.38% for FXU. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXU or VFH?

Over the 10-year period, VFH has performed better with a 13.15% return vs 9.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXU or VFH?

VFH is cheaper with a 0.09% expense ratio, compared with 0.62% for FXU.

Which ETF pays a higher dividend yield, FXU or VFH?

FXU has the higher dividend yield at 2.16%, compared with 1.48% for VFH.

What is the main difference between FXU and VFH?

FXU is categorized as Utilities Equities, while VFH is Financials Equities. FXU tracks StrataQuant Utilities Index, while VFH tracks MSCI US Investable Market Financials 25/50 Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.62% for FXU and 0.09% for VFH.

Which has better risk-adjusted returns?

FXU currently has the higher Sharpe Ratio (1.26 vs 0.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.