VFH vs. FNCL

Last updated Jun 23, 2026

VFH (Vanguard Financials ETF) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - VFH tracks the MSCI US Investable Market Financials 25/50 Index while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, VFH returned 13.46%/yr vs 13.39%/yr for FNCL. With a 1.00 correlation, they move nearly in lockstep. VFH charges 0.09%/yr vs 0.08%/yr for FNCL.

Performance

VFH vs. FNCL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Fidelity MSCI Financials Index ETF (FNCL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFH achieves a -0.69% return, which is significantly higher than FNCL's -0.77% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 13.46% annualized return and FNCL not far behind at 13.39%.

VFH

• 1D: 0.54%
• 1M: 3.75%
• YTD: -0.69%
• 6M: -1.93%
• 1Y: 9.84%
• 3Y*: 20.85%
• 5Y*: 10.29%
• 10Y*: 13.46%

FNCL

• 1D: 0.47%
• 1M: 3.73%
• YTD: -0.77%
• 6M: -2.03%
• 1Y: 9.85%
• 3Y*: 20.78%
• 5Y*: 10.23%
• 10Y*: 13.39%

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

VFH vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-0.69%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
FNCL Fidelity MSCI Financials Index ETF	-0.77%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%

Correlation

The correlation between VFH and FNCL is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	1.00

The correlation between VFH and FNCL has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

VFH vs. FNCL - Sectors Allocation Comparison

Sectors	VFH	FNCL
Financial Services	96.8%	96.9%
Technology	2.1%	2.0%
Real Estate	0.8%	0.7%
Industrials	0.2%	0.2%
Healthcare	0.1%	0.1%
Communication Services	0.0%	0.0%
Consumer Cyclical	0.0%	0.0%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

VFH vs. FNCL — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 18
VFH Sharpe Ratio Rank: 19
VFH Sortino Ratio Rank: 18
VFH Omega Ratio Rank: 18
VFH Calmar Ratio Rank: 16
VFH Martin Ratio Rank: 16

FNCL

FNCL Risk / Return Rank: 18
FNCL Sharpe Ratio Rank: 19
FNCL Sortino Ratio Rank: 18
FNCL Omega Ratio Rank: 18
FNCL Calmar Ratio Rank: 17
FNCL Martin Ratio Rank: 17

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.

VFH vs. FNCL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Fidelity MSCI Financials Index ETF (FNCL). 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	FNCL	Difference
Sharpe ratio: Return per unit of total volatility	0.66	0.66	0.00
Sortino ratio: Return per unit of downside risk	0.99	0.99	-0.01
Omega ratio: Gain probability vs. loss probability	1.12	1.12	0.00
Calmar ratio: Return relative to maximum drawdown	0.67	0.67	0.00
Martin ratio: Return relative to average drawdown	1.74	1.74	0.00

VFH vs. FNCL - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.66, which is comparable to the FNCL Sharpe Ratio of 0.66. The chart below compares the historical Sharpe Ratios of VFH and FNCL, 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

VFH vs. FNCL - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than FNCL's maximum drawdown of -44.38%. Use the drawdown chart below to compare losses from any high point for VFH and FNCL.

Drawdown Indicators

	VFH	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-44.38%	-34.23%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-14.78%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-17.29%	-0.01%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-25.68%	+0.02%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-44.38%	-0.04%
Current Drawdown Current decline from peak	-3.71%	-3.79%	+0.08%
Average Drawdown Average peak-to-trough decline	-18.51%	-6.90%	-11.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	5.68%	-0.01%

Volatility

VFH vs. FNCL - Volatility Comparison

Vanguard Financials ETF (VFH) and Fidelity MSCI Financials Index ETF (FNCL) have volatilities of 4.19% and 4.21%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.19%	4.21%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	11.41%	11.35%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	14.98%	14.96%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.26%	19.21%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.56%	22.36%	+0.20%

VFH vs. FNCL - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is higher than FNCL's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFH vs. FNCL - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.47%, less than FNCL's 1.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.65%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
VFH Vanguard Financials ETF	1.47%	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 VFH and FNCL in my portfolio?

With a correlation of 1.00, VFH and FNCL move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VFH or FNCL?

FNCL has higher volatility (4.21%) compared to VFH (4.19%). In terms of maximum drawdown, VFH dropped -78.61% vs FNCL's -44.38%.

Which ETF is better, VFH or FNCL?

On 10-year performance, VFH leads with 13.46% vs 13.39% for FNCL. On fees, FNCL is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or FNCL?

Over the 10-year period, VFH has performed better with a 13.46% return vs 13.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.09% for VFH.

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

FNCL has the higher dividend yield at 1.65%, compared with 1.47% for VFH.

What is the main difference between VFH and FNCL?

VFH tracks MSCI US Investable Market Financials 25/50 Index, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.09% for VFH and 0.08% for FNCL.

Which has better risk-adjusted returns?

FNCL currently has the higher Sharpe Ratio (0.66 vs 0.66), 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.