KWT vs. VFH

Last updated Jul 14, 2026

KWT (iShares MSCI Kuwait ETF) and VFH (Vanguard Financials ETF) are both Financials Equities funds - KWT tracks the MSCI All Kuwait Select Size Liquidity Capped Index while VFH tracks the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 5 years, KWT returned 8.57%/yr vs 11.15%/yr for VFH. At a 0.35 correlation, their price movements are largely independent. KWT charges 0.74%/yr vs 0.09%/yr for VFH.

Performance

KWT vs. VFH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Kuwait ETF (KWT) 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, KWT achieves a -3.40% return, which is significantly lower than VFH's 3.80% return.

KWT

• 1D: -1.00%
• 1M: -3.28%
• 6M: -1.77%
• YTD: -3.40%
• 1Y: -2.09%
• 3Y*: 7.37%
• 5Y*: 8.57%
• 10Y*: —

VFH

• 1D: 0.58%
• 1M: 5.46%
• 6M: 2.64%
• YTD: 3.80%
• 1Y: 9.73%
• 3Y*: 20.45%
• 5Y*: 11.15%
• 10Y*: 13.24%

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

KWT vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
KWT iShares MSCI Kuwait ETF	-3.40%	25.38%	11.29%	-4.71%	5.16%	30.73%	7.37%
VFH Vanguard Financials ETF	3.80%	14.91%	30.44%	14.17%	-12.31%	35.22%	18.58%

Correlation

The correlation between KWT and VFH is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 3, 2020	0.35

KWT vs. VFH - Sectors Allocation Comparison

Sectors	KWT	VFH
Financial Services	66.0%	96.8%
Real Estate	11.3%	0.8%
Industrials	9.5%	0.2%
Communication Services	6.3%	0.0%
Consumer Defensive	2.6%	-
Basic Materials	2.0%	-
Consumer Cyclical	1.7%	0.0%
Utilities	0.6%	-
Energy	-	-
Healthcare	-	0.1%
Technology	-	2.1%

Return for Risk

KWT vs. VFH — Risk / Return Rank

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

KWT

KWT Risk / Return Rank: 7
KWT Sharpe Ratio Rank: 8
KWT Sortino Ratio Rank: 7
KWT Omega Ratio Rank: 7
KWT Calmar Ratio Rank: 8
KWT Martin Ratio Rank: 7

VFH

VFH Risk / Return Rank: 21
VFH Sharpe Ratio Rank: 23
VFH Sortino Ratio Rank: 21
VFH Omega Ratio Rank: 21
VFH Calmar Ratio Rank: 19
VFH Martin Ratio Rank: 19

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.

KWT vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Kuwait ETF (KWT) 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.

	KWT	VFH	Difference
Sharpe ratio: Return per unit of total volatility	-0.16	0.65	-0.81
Sortino ratio: Return per unit of downside risk	-0.13	0.97	-1.10
Omega ratio: Gain probability vs. loss probability	0.98	1.12	-0.14
Calmar ratio: Return relative to maximum drawdown	-0.18	0.66	-0.84
Martin ratio: Return relative to average drawdown	-0.40	1.71	-2.11

KWT vs. VFH - Sharpe Ratio Comparison

The current KWT Sharpe Ratio is -0.16, which is lower than the VFH Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of KWT 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

KWT vs. VFH - Drawdown Comparison

The maximum KWT drawdown since its inception was -24.37%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for KWT and VFH.

Drawdown Indicators

	KWT	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-24.37%	-78.61%	+54.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.54%	-14.75%	+3.21%
Max Drawdown (3Y) Largest decline over 3 years	-15.22%	-17.30%	+2.08%
Max Drawdown (5Y) Largest decline over 5 years	-24.37%	-25.66%	+1.29%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.42%	—
Current Drawdown Current decline from peak	-8.07%	-0.17%	-7.90%
Average Drawdown Average peak-to-trough decline	-7.29%	-18.47%	+11.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.24%	5.69%	-0.45%

Volatility

KWT vs. VFH - Volatility Comparison

The current volatility for iShares MSCI Kuwait ETF (KWT) is 3.44%, while Vanguard Financials ETF (VFH) has a volatility of 4.12%. This indicates that KWT experiences smaller price fluctuations and is considered to be less risky than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KWT	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.44%	4.12%	-0.68%
Volatility (6M) Calculated over the trailing 6-month period	10.27%	11.51%	-1.24%
Volatility (1Y) Calculated over the trailing 1-year period	13.40%	15.08%	-1.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.65%	19.21%	-5.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.92%	22.47%	-8.55%

KWT vs. VFH - Expense Ratio Comparison

KWT has a 0.74% expense ratio, which is higher than VFH's 0.09% expense ratio.

Dividends

KWT vs. VFH - Dividend Comparison

KWT's dividend yield for the trailing twelve months is around 5.70%, more than VFH's 1.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KWT iShares MSCI Kuwait ETF	5.70%	5.40%	6.09%	2.25%	5.87%	7.65%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%
VFH Vanguard Financials ETF	1.69%	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 KWT and VFH in my portfolio?

KWT and VFH have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KWT or VFH?

VFH has higher volatility (4.12%) compared to KWT (3.44%). In terms of maximum drawdown, KWT dropped -24.37% vs VFH's -78.61%.

Which ETF is better, KWT or VFH?

On 5-year performance, VFH leads with 11.15% vs 8.57% for KWT. On fees, VFH is cheaper at 0.09% per year. On volatility, KWT has been the lower-risk option at 3.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KWT or VFH?

Over the 5-year period, VFH has performed better with a 11.15% return vs 8.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KWT or VFH?

VFH is cheaper with a 0.09% expense ratio, compared with 0.74% for KWT.

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

KWT has the higher dividend yield at 5.70%, compared with 1.69% for VFH.

What is the main difference between KWT and VFH?

KWT tracks MSCI All Kuwait Select Size Liquidity Capped Index, while VFH tracks MSCI US Investable Market Financials 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.74% for KWT and 0.09% for VFH.

Which has better risk-adjusted returns?

VFH currently has the higher Sharpe Ratio (0.65 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.