KBWD vs. VFH

Last updated Jun 4, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and VFH (Vanguard Financials ETF) are both Financials Equities funds - KBWD tracks the KBW Nasdaq Financial Sector Dividend Yield Index while VFH tracks the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 10 years, KBWD returned 4.82%/yr vs 12.20%/yr for VFH. A 0.77 correlation means they provide meaningful diversification when combined. KBWD charges 1.24%/yr vs 0.10%/yr for VFH.

Performance

KBWD vs. VFH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) 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, KBWD achieves a -5.52% return, which is significantly higher than VFH's -6.40% return. Over the past 10 years, KBWD has underperformed VFH with an annualized return of 4.82%, while VFH has yielded a comparatively higher 12.20% annualized return.

KBWD

• 1D: -2.44%
• 1M: -7.64%
• YTD: -5.52%
• 6M: -6.05%
• 1Y: 2.58%
• 3Y*: 6.15%
• 5Y*: 0.13%
• 10Y*: 4.82%

VFH

• 1D: -1.39%
• 1M: -1.74%
• YTD: -6.40%
• 6M: -3.96%
• 1Y: 2.39%
• 3Y*: 18.44%
• 5Y*: 7.83%
• 10Y*: 12.20%

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

KBWD vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-5.52%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
VFH Vanguard Financials ETF	-6.40%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%

Correlation

The correlation between KBWD and VFH is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Dec 3, 2010	0.77

The correlation between KBWD and VFH shifts across timeframes, from 0.62 (1 year) to 0.78 (5 years), reflecting how their relationship changes across market environments.

KBWD vs. VFH - Sectors Allocation Comparison

Sectors	KBWD	VFH
Financial Services	60.9%	96.8%
Real Estate	39.1%	0.8%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.1%
Industrials	-	0.2%
Technology	-	2.1%
Utilities	-	-

Return for Risk

KBWD vs. VFH — Risk / Return Rank

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

KBWD

KBWD Risk / Return Rank: 10
KBWD Sharpe Ratio Rank: 11
KBWD Sortino Ratio Rank: 10
KBWD Omega Ratio Rank: 10
KBWD Calmar Ratio Rank: 11
KBWD Martin Ratio Rank: 11

VFH

VFH Risk / Return Rank: 10
VFH Sharpe Ratio Rank: 11
VFH Sortino Ratio Rank: 10
VFH Omega Ratio Rank: 10
VFH Calmar Ratio Rank: 10
VFH Martin Ratio Rank: 10

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.

KBWD vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) 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.

	KBWD	VFH	Difference
Sharpe ratio: Return per unit of total volatility	0.17	0.16	+0.01
Sortino ratio: Return per unit of downside risk	0.34	0.32	+0.03
Omega ratio: Gain probability vs. loss probability	1.04	1.04	0.00
Calmar ratio: Return relative to maximum drawdown	0.17	0.16	+0.01
Martin ratio: Return relative to average drawdown	0.45	0.43	+0.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KBWD vs. VFH - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is 0.17, which is comparable to the VFH Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of KBWD 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

	KBWD	VFH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.17	0.16	+0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.41	-0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.54	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.24	+0.03

Drawdowns

KBWD vs. VFH - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for KBWD and VFH.

Drawdown Indicators

	KBWD	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-78.61%	+19.98%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-14.75%	-0.30%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-17.30%	-2.35%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-25.66%	-5.08%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-44.42%	-14.21%
Current Drawdown Current decline from peak	-12.23%	-9.24%	-2.99%
Average Drawdown Average peak-to-trough decline	-7.41%	-18.54%	+11.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	5.55%	+0.25%

Volatility

KBWD vs. VFH - Volatility Comparison

Invesco KBW High Dividend Yield Financial ETF (KBWD) has a higher volatility of 3.94% compared to Vanguard Financials ETF (VFH) at 3.34%. This indicates that KBWD'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

	KBWD	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	3.34%	+0.60%
Volatility (6M) Calculated over the trailing 6-month period	12.09%	11.10%	+0.99%
Volatility (1Y) Calculated over the trailing 1-year period	15.41%	14.79%	+0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.85%	19.31%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	22.54%	+0.70%

KBWD vs. VFH - Expense Ratio Comparison

KBWD has a 1.24% expense ratio, which is higher than VFH's 0.10% expense ratio.

Dividends

KBWD vs. VFH - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.40%, more than VFH's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWD Invesco KBW High Dividend Yield Financial ETF	14.40%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%
VFH Vanguard Financials ETF	1.56%	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 KBWD and VFH in my portfolio?

KBWD and VFH have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or VFH?

KBWD has higher volatility (3.94%) compared to VFH (3.34%). In terms of maximum drawdown, KBWD dropped -58.63% vs VFH's -78.61%.

Which ETF is better, KBWD or VFH?

On 10-year performance, VFH leads with 12.20% vs 4.82% for KBWD. On fees, VFH is cheaper at 0.10% per year. On volatility, VFH has been the lower-risk option at 3.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWD or VFH?

Over the 10-year period, VFH has performed better with a 12.20% return vs 4.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or VFH?

VFH is cheaper with a 0.10% expense ratio, compared with 1.24% for KBWD.

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

KBWD has the higher dividend yield at 14.40%, compared with 1.56% for VFH.

What is the main difference between KBWD and VFH?

KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while VFH tracks MSCI US Investable Market Financials 25/50 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 1.24% for KBWD and 0.10% for VFH.

Which has better risk-adjusted returns?

KBWD currently has the higher Sharpe Ratio (0.17 vs 0.16), 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.