RWJ vs. VFH

Last updated Jun 13, 2026

RWJ (Invesco S&P SmallCap 600 Revenue ETF) and VFH (Vanguard Financials ETF) are both exchange-traded funds - RWJ is a Small Cap Value Equities fund tracking the S&P SmallCap 600 Revenue-Weighted 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, RWJ returned 13.64%/yr vs 13.15%/yr for VFH. A 0.76 correlation means they provide meaningful diversification when combined. RWJ charges 0.39%/yr vs 0.09%/yr for VFH.

Performance

RWJ vs. VFH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap 600 Revenue ETF (RWJ) 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, RWJ achieves a 21.05% return, which is significantly higher than VFH's -1.58% return. Both investments have delivered pretty close results over the past 10 years, with RWJ having a 13.64% annualized return and VFH not far behind at 13.15%.

RWJ

• 1D: 1.08%
• 1M: 7.83%
• YTD: 21.05%
• 6M: 17.99%
• 1Y: 42.98%
• 3Y*: 17.13%
• 5Y*: 8.52%
• 10Y*: 13.64%

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)

RWJ vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWJ Invesco S&P SmallCap 600 Revenue ETF	21.05%	7.75%	11.81%	16.21%	-10.97%	52.82%	20.83%	20.29%	-16.95%	5.30%
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 RWJ and VFH is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Feb 22, 2008	0.76

The correlation between RWJ and VFH shifts across timeframes, from 0.68 (1 year) to 0.79 (5 years), reflecting how their relationship changes across market environments.

RWJ vs. VFH - Sectors Allocation Comparison

Sectors	RWJ	VFH
Consumer Cyclical	23.9%	0.0%
Industrials	16.2%	0.2%
Healthcare	11.2%	0.1%
Financial Services	11.0%	96.8%
Technology	9.9%	2.1%
Energy	7.4%	-
Consumer Defensive	6.9%	-
Basic Materials	5.2%	-
Real Estate	4.0%	0.8%
Communication Services	3.3%	0.0%
Utilities	0.9%	-

Return for Risk

RWJ vs. VFH — Risk / Return Rank

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

RWJ

RWJ Risk / Return Rank: 74
RWJ Sharpe Ratio Rank: 74
RWJ Sortino Ratio Rank: 77
RWJ Omega Ratio Rank: 69
RWJ Calmar Ratio Rank: 78
RWJ Martin Ratio Rank: 71

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.

RWJ vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap 600 Revenue ETF (RWJ) 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.

	RWJ	VFH	Difference
Sharpe ratio: Return per unit of total volatility	2.07	0.51	+1.56
Sortino ratio: Return per unit of downside risk	2.95	0.78	+2.17
Omega ratio: Gain probability vs. loss probability	1.35	1.10	+0.26
Calmar ratio: Return relative to maximum drawdown	3.56	0.52	+3.04
Martin ratio: Return relative to average drawdown	11.43	1.35	+10.07

RWJ vs. VFH - Sharpe Ratio Comparison

The current RWJ Sharpe Ratio is 2.07, which is higher than the VFH Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of RWJ 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

RWJ vs. VFH - Drawdown Comparison

The maximum RWJ drawdown since its inception was -55.97%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for RWJ and VFH.

Drawdown Indicators

	RWJ	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-55.97%	-78.61%	+22.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.31%	-14.75%	+3.44%
Max Drawdown (3Y) Largest decline over 3 years	-29.29%	-17.30%	-11.99%
Max Drawdown (5Y) Largest decline over 5 years	-29.29%	-25.66%	-3.63%
Max Drawdown (10Y) Largest decline over 10 years	-51.33%	-44.42%	-6.91%
Current Drawdown Current decline from peak	0.00%	-4.57%	+4.57%
Average Drawdown Average peak-to-trough decline	-9.22%	-18.52%	+9.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.52%	5.65%	-2.13%

Volatility

RWJ vs. VFH - Volatility Comparison

Invesco S&P SmallCap 600 Revenue ETF (RWJ) has a higher volatility of 4.67% compared to Vanguard Financials ETF (VFH) at 4.33%. This indicates that RWJ'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

	RWJ	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.67%	4.33%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	12.46%	11.41%	+1.05%
Volatility (1Y) Calculated over the trailing 1-year period	19.48%	15.06%	+4.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.71%	19.34%	+4.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.14%	22.55%	+3.59%

RWJ vs. VFH - Expense Ratio Comparison

RWJ has a 0.39% expense ratio, which is higher than VFH's 0.09% expense ratio.

Dividends

RWJ vs. VFH - Dividend Comparison

RWJ's dividend yield for the trailing twelve months is around 0.97%, less than VFH's 1.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RWJ Invesco S&P SmallCap 600 Revenue ETF	0.97%	1.11%	1.15%	1.34%	1.02%	0.61%	0.89%	1.22%	1.44%	1.11%	0.60%	0.74%
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 RWJ and VFH in my portfolio?

RWJ and VFH have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWJ or VFH?

RWJ has higher volatility (4.67%) compared to VFH (4.33%). In terms of maximum drawdown, RWJ dropped -55.97% vs VFH's -78.61%.

Which ETF is better, RWJ or VFH?

On 10-year performance, RWJ leads with 13.64% vs 13.15% for VFH. 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, RWJ or VFH?

Over the 10-year period, RWJ has performed better with a 13.64% return vs 13.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWJ or VFH?

VFH is cheaper with a 0.09% expense ratio, compared with 0.39% for RWJ.

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

VFH has the higher dividend yield at 1.48%, compared with 0.97% for RWJ.

What is the main difference between RWJ and VFH?

RWJ is categorized as Small Cap Value Equities, while VFH is Financials Equities. RWJ tracks S&P SmallCap 600 Revenue-Weighted 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: 0.39% for RWJ and 0.09% for VFH.

Which has better risk-adjusted returns?

RWJ currently has the higher Sharpe Ratio (2.07 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.