HSBH vs. VFH

Last updated Jun 6, 2026

HSBH (HSBC Holdings plc ADRhedged ETF) and VFH (Vanguard Financials ETF) are both Financials Equities funds - HSBH tracks the HSBC Holdings plc Local Shares Total Return while VFH tracks the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past year, HSBH returned 60.04% vs 4.71% for VFH. At a 0.47 correlation, their price movements are largely independent. HSBH charges 0.19%/yr vs 0.09%/yr for VFH.

Performance

HSBH vs. VFH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in HSBC Holdings plc ADRhedged ETF (HSBH) 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, HSBH achieves a 19.58% return, which is significantly higher than VFH's -3.75% return.

HSBH

• 1D: -1.17%
• 1M: 1.73%
• YTD: 19.58%
• 6M: 30.69%
• 1Y: 60.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VFH

• 1D: 0.14%
• 1M: 0.97%
• YTD: -3.75%
• 6M: -1.44%
• 1Y: 4.71%
• 3Y*: 19.25%
• 5Y*: 8.43%
• 10Y*: 12.48%

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

HSBH vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025
HSBH HSBC Holdings plc ADRhedged ETF	19.58%	40.02%
VFH Vanguard Financials ETF	-3.75%	18.28%

Correlation

The correlation between HSBH and VFH is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (All Time) Calculated using the full available price history since Apr 24, 2025	0.47

HSBH vs. VFH - Sectors Allocation Comparison

Sectors	HSBH	VFH
Financial Services	100.0%	96.8%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.1%
Industrials	-	0.2%
Real Estate	-	0.8%
Technology	-	2.1%
Utilities	-	-

Return for Risk

HSBH vs. VFH — Risk / Return Rank

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

HSBH

HSBH Risk / Return Rank: 84
HSBH Sharpe Ratio Rank: 88
HSBH Sortino Ratio Rank: 84
HSBH Omega Ratio Rank: 84
HSBH Calmar Ratio Rank: 83
HSBH Martin Ratio Rank: 82

VFH

VFH Risk / Return Rank: 15
VFH Sharpe Ratio Rank: 16
VFH Sortino Ratio Rank: 15
VFH Omega Ratio Rank: 16
VFH Calmar Ratio Rank: 14
VFH Martin Ratio Rank: 14

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.

HSBH vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC Holdings plc ADRhedged ETF (HSBH) 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.

	HSBH	VFH	Difference
Sharpe ratio: Return per unit of total volatility	2.64	0.41	+2.23
Sortino ratio: Return per unit of downside risk	3.42	0.66	+2.77
Omega ratio: Gain probability vs. loss probability	1.46	1.08	+0.38
Calmar ratio: Return relative to maximum drawdown	4.07	0.42	+3.65
Martin ratio: Return relative to average drawdown	14.96	1.11	+13.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HSBH vs. VFH - Sharpe Ratio Comparison

The current HSBH Sharpe Ratio is 2.64, which is higher than the VFH Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of HSBH 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.

Sharpe Ratios by Period

	HSBH	VFH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.64	0.41	+2.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.55	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.62	0.25	+2.38

Drawdowns

HSBH vs. VFH - Drawdown Comparison

The maximum HSBH drawdown since its inception was -14.81%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for HSBH and VFH.

Drawdown Indicators

	HSBH	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-14.81%	-78.61%	+63.80%
Max Drawdown (1Y) Largest decline over 1 year	-14.81%	-14.75%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.30%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.66%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-44.42%	—
Current Drawdown Current decline from peak	-3.52%	-6.67%	+3.15%
Average Drawdown Average peak-to-trough decline	-2.34%	-18.54%	+16.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	5.58%	-1.56%

Volatility

HSBH vs. VFH - Volatility Comparison

HSBC Holdings plc ADRhedged ETF (HSBH) has a higher volatility of 6.52% compared to Vanguard Financials ETF (VFH) at 4.29%. This indicates that HSBH'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

	HSBH	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.52%	4.29%	+2.23%
Volatility (6M) Calculated over the trailing 6-month period	18.58%	11.33%	+7.25%
Volatility (1Y) Calculated over the trailing 1-year period	22.83%	15.01%	+7.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.43%	19.33%	+3.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.43%	22.55%	-0.12%

HSBH vs. VFH - Expense Ratio Comparison

HSBH has a 0.19% expense ratio, which is higher than VFH's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HSBH vs. VFH - Dividend Comparison

HSBH's dividend yield for the trailing twelve months is around 0.34%, less than VFH's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSBH HSBC Holdings plc ADRhedged ETF	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFH Vanguard Financials ETF	1.52%	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 HSBH and VFH in my portfolio?

HSBH and VFH have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HSBH or VFH?

HSBH has higher volatility (6.52%) compared to VFH (4.29%). In terms of maximum drawdown, HSBH dropped -14.81% vs VFH's -78.61%.

Which ETF is better, HSBH or VFH?

On 1-year performance, HSBH leads with 60.04% vs 4.71% for VFH. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HSBH or VFH?

Over the 1-year period, HSBH has performed better with a 60.04% return vs 4.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HSBH or VFH?

VFH is cheaper with a 0.09% expense ratio, compared with 0.19% for HSBH.

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

VFH has the higher dividend yield at 1.52%, compared with 0.34% for HSBH.

What is the main difference between HSBH and VFH?

HSBH tracks HSBC Holdings plc Local Shares Total Return, while VFH tracks MSCI US Investable Market Financials 25/50 Index. They also come from different issuers: ADRhedged and Vanguard. Their fees differ too: 0.19% for HSBH and 0.09% for VFH.

Which has better risk-adjusted returns?

HSBH currently has the higher Sharpe Ratio (2.64 vs 0.41), 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.