VFH vs. DGS
VFH (Vanguard Financials ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, VFH returned 13.15%/yr vs 10.14%/yr for DGS. A 0.59 correlation means they provide meaningful diversification when combined. VFH charges 0.09%/yr vs 0.58%/yr for DGS.
Performance
VFH vs. DGS - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VFH achieves a -1.58% return, which is significantly lower than DGS's 14.94% return. Over the past 10 years, VFH has outperformed DGS with an annualized return of 13.15%, while DGS has yielded a comparatively lower 10.14% annualized return.
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%
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
VFH vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | -1.58% | 14.91% | 30.44% | 14.17% | -12.31% | 35.22% | -1.96% | 31.57% | -13.52% | 19.99% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between VFH and DGS is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | 0.59 |
Over the past year, the correlation between VFH and DGS has dropped to 0.38 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VFH vs. DGS — Risk / Return Rank
VFH
DGS
VFH vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| VFH | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.93 | ||
| Sortino ratioReturn per unit of downside risk | -1.24 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.27 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 0.52 | 2.38 | -1.86 |
| Martin ratioReturn relative to average drawdown | 1.35 | 7.84 | -6.49 |
Loading charts...
Drawdowns
VFH vs. DGS - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, which is greater than DGS's maximum drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for VFH and DGS.
Loading charts...
Drawdown Indicators
| VFH | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.61% | -61.83% | -16.78% |
Max Drawdown (1Y)Largest decline over 1 year | -14.75% | -10.06% | -4.69% |
Max Drawdown (3Y)Largest decline over 3 years | -17.30% | -19.31% | +2.01% |
Max Drawdown (5Y)Largest decline over 5 years | -25.66% | -24.86% | -0.80% |
Max Drawdown (10Y)Largest decline over 10 years | -44.42% | -44.08% | -0.34% |
Current DrawdownCurrent decline from peak | -4.57% | -1.05% | -3.52% |
Average DrawdownAverage peak-to-trough decline | -18.52% | -12.57% | -5.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.65% | 3.05% | +2.60% |
Volatility
VFH vs. DGS - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.33%, while WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) has a volatility of 7.30%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VFH | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.33% | 7.30% | -2.97% |
Volatility (6M)Calculated over the trailing 6-month period | 11.41% | 14.27% | -2.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.06% | 16.60% | -1.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.34% | 15.08% | +4.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.55% | 17.39% | +5.16% |
VFH vs. DGS - Expense Ratio Comparison
VFH has a 0.09% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
VFH vs. DGS - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.48%, less than DGS's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
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
VFH and DGS have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DGS has higher volatility (7.30%) compared to VFH (4.33%). In terms of maximum drawdown, VFH dropped -78.61% vs DGS's -61.83%.
On 10-year performance, VFH leads with 13.15% vs 10.14% for DGS. 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.
Over the 10-year period, VFH has performed better with a 13.15% return vs 10.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFH is cheaper with a 0.09% expense ratio, compared with 0.58% for DGS.
DGS has the higher dividend yield at 3.20%, compared with 1.48% for VFH.
VFH is categorized as Financials Equities, while DGS is Emerging Markets Diversified. VFH tracks MSCI US Investable Market Financials 25/50 Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.09% for VFH and 0.58% for DGS.
DGS currently has the higher Sharpe Ratio (1.44 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.
Find the right allocation for VFH and DGS
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer