VFH vs. KBWB
Compare and contrast key facts about Vanguard Financials ETF (VFH) and Invesco KBW Bank ETF (KBWB).
VFH and KBWB 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. KBWB is a passively managed fund by Invesco that tracks the performance of the KBW Nasdaq Bank Index. It was launched on Nov 1, 2011. Both VFH and KBWB 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 KBWB.
Key characteristics
| VFH | KBWB | |
|---|---|---|
| YTD Return | 24.36% | 29.72% |
| 1Y Return | 41.15% | 57.24% |
| 3Y Return (Ann) | 6.68% | -1.47% |
| 5Y Return (Ann) | 11.58% | 5.33% |
| 10Y Return (Ann) | 11.17% | 7.81% |
| Sharpe Ratio | 3.53 | 3.32 |
| Sortino Ratio | 4.61 | 4.40 |
| Omega Ratio | 1.61 | 1.55 |
| Calmar Ratio | 2.67 | 1.56 |
| Martin Ratio | 23.07 | 22.60 |
| Ulcer Index | 2.04% | 3.07% |
| Daily Std Dev | 13.31% | 20.91% |
| Max Drawdown | -78.61% | -50.27% |
| Current Drawdown | -2.47% | -10.08% |
Correlation
The correlation between VFH and KBWB is 0.94, 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. KBWB - Performance Comparison
In the year-to-date period, VFH achieves a 24.36% return, which is significantly lower than KBWB's 29.72% return. Over the past 10 years, VFH has outperformed KBWB with an annualized return of 11.17%, while KBWB has yielded a comparatively lower 7.81% annualized return. 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. KBWB - Expense Ratio Comparison
VFH has a 0.10% expense ratio, which is lower than KBWB's 0.35% expense ratio.
Risk-Adjusted Performance
VFH vs. KBWB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Invesco KBW Bank ETF (KBWB). 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. KBWB - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.73%, less than KBWB's 2.63% 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% |
KBWB Invesco KBW Bank ETF | 2.63% | 3.20% | 3.05% | 2.13% | 2.62% | 2.38% | 2.54% | 1.35% | 1.53% | 1.53% | 1.52% | 1.43% |
Drawdowns
VFH vs. KBWB - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, which is greater than KBWB's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for VFH and KBWB. For additional features, visit the drawdowns tool.
Volatility
VFH vs. KBWB - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.35%, while Invesco KBW Bank ETF (KBWB) has a volatility of 5.57%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.