VFH vs. IYF
Compare and contrast key facts about Vanguard Financials ETF (VFH) and iShares U.S. Financials ETF (IYF).
VFH and IYF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. IYF is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Financials Index. It was launched on May 31, 2000. Both VFH and IYF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFH or IYF.
Key characteristics
| VFH | IYF | |
|---|---|---|
| YTD Return | 24.36% | 26.09% |
| 1Y Return | 41.15% | 42.40% |
| 3Y Return (Ann) | 6.68% | 8.05% |
| 5Y Return (Ann) | 11.58% | 11.93% |
| 10Y Return (Ann) | 11.17% | 11.16% |
| Sharpe Ratio | 3.53 | 3.56 |
| Sortino Ratio | 4.61 | 4.59 |
| Omega Ratio | 1.61 | 1.60 |
| Calmar Ratio | 2.67 | 3.13 |
| Martin Ratio | 23.07 | 23.21 |
| Ulcer Index | 2.04% | 2.07% |
| Daily Std Dev | 13.31% | 13.52% |
| Max Drawdown | -78.61% | -79.09% |
| Current Drawdown | -2.47% | -2.83% |
Correlation
The correlation between VFH and IYF is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VFH vs. IYF - Performance Comparison
In the year-to-date period, VFH achieves a 24.36% return, which is significantly lower than IYF's 26.09% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 11.17% annualized return and IYF not far behind at 11.16%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFH vs. IYF - Expense Ratio Comparison
VFH has a 0.10% expense ratio, which is lower than IYF's 0.42% expense ratio.
Risk-Adjusted Performance
VFH vs. IYF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and iShares U.S. Financials ETF (IYF). 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.
Dividends
VFH vs. IYF - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.73%, more than IYF's 1.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.73% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
IYF iShares U.S. Financials ETF | 1.30% | 1.67% | 1.86% | 1.27% | 1.72% | 1.65% | 1.90% | 1.46% | 1.67% | 1.66% | 1.38% | 1.33% |
Drawdowns
VFH vs. IYF - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, roughly equal to the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for VFH and IYF. For additional features, visit the drawdowns tool.
Volatility
VFH vs. IYF - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.35%, while iShares U.S. Financials ETF (IYF) has a volatility of 4.61%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.