KBWB vs. VFH
Compare and contrast key facts about Invesco KBW Bank ETF (KBWB) and Vanguard Financials ETF (VFH).
KBWB and VFH are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. KBWB is a passively managed fund by Invesco that tracks the performance of the KBW Nasdaq Bank Index. It was launched on Nov 1, 2011. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. Both KBWB and VFH are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: KBWB or VFH.
Key characteristics
| KBWB | VFH | |
|---|---|---|
| YTD Return | 29.72% | 24.36% |
| 1Y Return | 57.24% | 41.15% |
| 3Y Return (Ann) | -1.47% | 6.68% |
| 5Y Return (Ann) | 5.33% | 11.58% |
| 10Y Return (Ann) | 7.81% | 11.17% |
| Sharpe Ratio | 3.32 | 3.53 |
| Sortino Ratio | 4.40 | 4.61 |
| Omega Ratio | 1.55 | 1.61 |
| Calmar Ratio | 1.56 | 2.67 |
| Martin Ratio | 22.60 | 23.07 |
| Ulcer Index | 3.07% | 2.04% |
| Daily Std Dev | 20.91% | 13.31% |
| Max Drawdown | -50.27% | -78.61% |
| Current Drawdown | -10.08% | -2.47% |
Correlation
The correlation between KBWB and VFH is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
KBWB vs. VFH - Performance Comparison
In the year-to-date period, KBWB achieves a 29.72% return, which is significantly higher than VFH's 24.36% return. Over the past 10 years, KBWB has underperformed VFH with an annualized return of 7.81%, while VFH has yielded a comparatively higher 11.17% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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KBWB vs. VFH - Expense Ratio Comparison
KBWB has a 0.35% expense ratio, which is higher than VFH's 0.10% expense ratio.
Risk-Adjusted Performance
KBWB vs. VFH - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco KBW Bank ETF (KBWB) 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.
Dividends
KBWB vs. VFH - Dividend Comparison
KBWB's dividend yield for the trailing twelve months is around 2.63%, more than VFH's 1.73% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBWB Invesco KBW Bank ETF | 2.63% | 3.20% | 3.05% | 2.13% | 2.62% | 2.38% | 2.54% | 1.35% | 1.53% | 1.53% | 1.52% | 1.43% |
VFH Vanguard Financials ETF | 1.73% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
Drawdowns
KBWB vs. VFH - Drawdown Comparison
The maximum KBWB drawdown since its inception was -50.27%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for KBWB and VFH. For additional features, visit the drawdowns tool.
Volatility
KBWB vs. VFH - Volatility Comparison
Invesco KBW Bank ETF (KBWB) has a higher volatility of 5.57% compared to Vanguard Financials ETF (VFH) at 4.35%. This indicates that KBWB'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.