VFH vs. IAK

Last updated Jun 4, 2026

VFH (Vanguard Financials ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - VFH tracks the MSCI US Investable Market Financials 25/50 Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, VFH returned 12.20%/yr vs 11.66%/yr for IAK. Their correlation of 0.85 suggests significant overlap in exposure. VFH charges 0.10%/yr vs 0.43%/yr for IAK.

Performance

VFH vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and iShares U.S. Insurance ETF (IAK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFH achieves a -6.40% return, which is significantly lower than IAK's -4.56% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 12.20% annualized return and IAK not far behind at 11.66%.

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%

IAK

• 1D: -0.88%
• 1M: -2.27%
• YTD: -4.56%
• 6M: -1.81%
• 1Y: -4.16%
• 3Y*: 16.73%
• 5Y*: 11.50%
• 10Y*: 11.66%

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

VFH vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-6.40%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
IAK iShares U.S. Insurance ETF	-4.56%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between VFH and IAK is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.85

Over the past year, the correlation between VFH and IAK has dropped to 0.59 - well below their long-term average of 0.85, suggesting their price drivers have been diverging.

VFH vs. IAK - Sectors Allocation Comparison

Sectors	VFH	IAK
Financial Services	96.8%	99.5%
Technology	2.1%	-
Real Estate	0.8%	-
Industrials	0.2%	-
Healthcare	0.1%	0.5%
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

VFH vs. IAK — Risk / Return Rank

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

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

IAK

IAK Risk / Return Rank: 5
IAK Sharpe Ratio Rank: 6
IAK Sortino Ratio Rank: 6
IAK Omega Ratio Rank: 5
IAK Calmar Ratio Rank: 4
IAK Martin Ratio Rank: 3

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. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and iShares U.S. Insurance ETF (IAK). 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.

	VFH	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.16	-0.28	+0.45
Sortino ratio: Return per unit of downside risk	0.32	-0.29	+0.61
Omega ratio: Gain probability vs. loss probability	1.04	0.97	+0.07
Calmar ratio: Return relative to maximum drawdown	0.16	-0.55	+0.71
Martin ratio: Return relative to average drawdown	0.43	-1.14	+1.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFH vs. IAK - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.16, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of VFH and IAK, 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

	VFH	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.16	-0.28	+0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.64	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.56	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.26	-0.02

Drawdowns

VFH vs. IAK - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, roughly equal to the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for VFH and IAK.

Drawdown Indicators

	VFH	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-77.38%	-1.23%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-7.62%	-7.13%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-11.58%	-5.72%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-14.76%	-10.90%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-44.95%	+0.53%
Current Drawdown Current decline from peak	-9.24%	-5.82%	-3.42%
Average Drawdown Average peak-to-trough decline	-18.54%	-16.13%	-2.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.55%	3.96%	+1.59%

Volatility

VFH vs. IAK - Volatility Comparison

The current volatility for Vanguard Financials ETF (VFH) is 3.34%, while iShares U.S. Insurance ETF (IAK) has a volatility of 3.82%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than IAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.34%	3.82%	-0.48%
Volatility (6M) Calculated over the trailing 6-month period	11.10%	9.98%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	14.79%	14.77%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.31%	18.07%	+1.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.54%	20.89%	+1.65%

VFH vs. IAK - Expense Ratio Comparison

VFH has a 0.10% expense ratio, which is lower than IAK's 0.43% expense ratio.

Dividends

VFH vs. IAK - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.56%, less than IAK's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.76%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
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 VFH and IAK in my portfolio?

VFH and IAK have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFH or IAK?

IAK has higher volatility (3.82%) compared to VFH (3.34%). In terms of maximum drawdown, VFH dropped -78.61% vs IAK's -77.38%.

Which ETF is better, VFH or IAK?

On 10-year performance, VFH leads with 12.20% vs 11.66% for IAK. 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, VFH or IAK?

Over the 10-year period, VFH has performed better with a 12.20% return vs 11.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or IAK?

VFH is cheaper with a 0.10% expense ratio, compared with 0.43% for IAK.

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

IAK has the higher dividend yield at 2.76%, compared with 1.56% for VFH.

What is the main difference between VFH and IAK?

VFH tracks MSCI US Investable Market Financials 25/50 Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.10% for VFH and 0.43% for IAK.

Which has better risk-adjusted returns?

VFH currently has the higher Sharpe Ratio (0.16 vs -0.28), 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.