VFH vs. IYG
Compare and contrast key facts about Vanguard Financials ETF (VFH) and iShares U.S. Financial Services ETF (IYG).
VFH and IYG 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. IYG is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Financial Services TR. It was launched on Jun 12, 2000. Both VFH and IYG are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
VFH vs. IYG - Performance Comparison
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VFH vs. IYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | -9.19% | 14.91% | 30.44% | 14.17% | -12.31% | 35.22% | -1.96% | 31.57% | -13.52% | 19.99% |
IYG iShares U.S. Financial Services ETF | -9.82% | 19.85% | 31.94% | 16.07% | -16.76% | 30.36% | 0.99% | 37.62% | -12.56% | 24.47% |
Returns By Period
In the year-to-date period, VFH achieves a -9.19% return, which is significantly higher than IYG's -9.82% return. Over the past 10 years, VFH has underperformed IYG with an annualized return of 12.30%, while IYG has yielded a comparatively higher 13.56% annualized return.
VFH
- 1D
- 0.02%
- 1M
- -3.54%
- YTD
- -9.19%
- 6M
- -6.32%
- 1Y
- 2.78%
- 3Y*
- 17.95%
- 5Y*
- 9.33%
- 10Y*
- 12.30%
IYG
- 1D
- 0.10%
- 1M
- -2.91%
- YTD
- -9.82%
- 6M
- -5.92%
- 1Y
- 6.93%
- 3Y*
- 19.75%
- 5Y*
- 9.12%
- 10Y*
- 13.56%
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VFH vs. IYG - Expense Ratio Comparison
VFH has a 0.10% expense ratio, which is lower than IYG's 0.42% expense ratio.
Return for Risk
VFH vs. IYG — Risk / Return Rank
VFH
IYG
VFH vs. IYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and iShares U.S. Financial Services ETF (IYG). 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 | IYG | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.14 | 0.33 | -0.19 |
Sortino ratioReturn per unit of downside risk | 0.32 | 0.58 | -0.26 |
Omega ratioGain probability vs. loss probability | 1.05 | 1.09 | -0.04 |
Calmar ratioReturn relative to maximum drawdown | 0.18 | 0.43 | -0.24 |
Martin ratioReturn relative to average drawdown | 0.54 | 1.27 | -0.73 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VFH | IYG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.14 | 0.33 | -0.19 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.48 | 0.45 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.55 | 0.58 | -0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.24 | 0.22 | +0.02 |
Correlation
The correlation between VFH and IYG is 0.97, 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.
Dividends
VFH vs. IYG - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.61%, more than IYG's 1.18% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.61% | 1.55% | 1.75% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% |
IYG iShares U.S. Financial Services ETF | 1.18% | 1.00% | 1.16% | 1.77% | 2.07% | 1.25% | 1.71% | 1.59% | 1.81% | 1.24% | 1.28% | 1.33% |
Drawdowns
VFH vs. IYG - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, roughly equal to the maximum IYG drawdown of -81.84%. Use the drawdown chart below to compare losses from any high point for VFH and IYG.
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Drawdown Indicators
| VFH | IYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.61% | -81.84% | +3.23% |
Max Drawdown (1Y)Largest decline over 1 year | -14.75% | -15.90% | +1.15% |
Max Drawdown (5Y)Largest decline over 5 years | -25.66% | -29.62% | +3.96% |
Max Drawdown (10Y)Largest decline over 10 years | -44.42% | -44.32% | -0.10% |
Current DrawdownCurrent decline from peak | -11.95% | -12.96% | +1.01% |
Average DrawdownAverage peak-to-trough decline | -18.62% | -20.83% | +2.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.99% | 5.31% | -0.32% |
Volatility
VFH vs. IYG - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.85%, while iShares U.S. Financial Services ETF (IYG) has a volatility of 5.14%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than IYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFH | IYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.85% | 5.14% | -0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 11.75% | 12.44% | -0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.93% | 20.88% | -0.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.37% | 20.49% | -1.12% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.55% | 23.61% | -1.06% |