VFH vs. KBWP

Last updated Jun 24, 2026

VFH (Vanguard Financials ETF) and KBWP (Invesco KBW Property & Casualty Insurance ETF) are both Financials Equities funds - VFH tracks the MSCI US Investable Market Financials 25/50 Index while KBWP tracks the KBW Nasdaq Property & Casualty (TR). Both are passively managed. Over the past 10 years, VFH returned 13.51%/yr vs 12.39%/yr for KBWP. A 0.63 correlation means they provide meaningful diversification when combined. VFH charges 0.09%/yr vs 0.35%/yr for KBWP.

Performance

VFH vs. KBWP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Invesco KBW Property & Casualty Insurance ETF (KBWP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFH achieves a -0.29% return, which is significantly higher than KBWP's -1.94% return. Over the past 10 years, VFH has outperformed KBWP with an annualized return of 13.51%, while KBWP has yielded a comparatively lower 12.39% annualized return.

VFH

• 1D: 0.40%
• 1M: 4.17%
• YTD: -0.29%
• 6M: -1.61%
• 1Y: 8.93%
• 3Y*: 21.01%
• 5Y*: 10.11%
• 10Y*: 13.51%

KBWP

• 1D: 2.46%
• 1M: 2.63%
• YTD: -1.94%
• 6M: -2.38%
• 1Y: 2.45%
• 3Y*: 17.19%
• 5Y*: 12.41%
• 10Y*: 12.39%

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

VFH vs. KBWP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-0.29%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
KBWP Invesco KBW Property & Casualty Insurance ETF	-1.94%	11.49%	30.45%	7.09%	10.16%	20.61%	-2.05%	28.67%	-2.76%	8.86%

Correlation

The correlation between VFH and KBWP is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Dec 22, 2010	0.63

The correlation between VFH and KBWP shifts across timeframes, from 0.50 (1 year) to 0.70 (10 years), reflecting how their relationship changes across market environments.

VFH vs. KBWP - Sectors Allocation Comparison

Sectors	VFH	KBWP
Financial Services	96.8%	100.0%
Technology	2.1%	-
Real Estate	0.8%	-
Industrials	0.2%	-
Healthcare	0.1%	-
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

VFH vs. KBWP — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 17
VFH Sharpe Ratio Rank: 19
VFH Sortino Ratio Rank: 17
VFH Omega Ratio Rank: 17
VFH Calmar Ratio Rank: 16
VFH Martin Ratio Rank: 16

KBWP

KBWP Risk / Return Rank: 11
KBWP Sharpe Ratio Rank: 10
KBWP Sortino Ratio Rank: 10
KBWP Omega Ratio Rank: 10
KBWP Calmar Ratio Rank: 11
KBWP Martin Ratio Rank: 11

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. KBWP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Invesco KBW Property & Casualty Insurance ETF (KBWP). 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	KBWP	Difference
Sharpe ratio: Return per unit of total volatility	0.60	0.15	+0.45
Sortino ratio: Return per unit of downside risk	0.91	0.32	+0.59
Omega ratio: Gain probability vs. loss probability	1.11	1.04	+0.07
Calmar ratio: Return relative to maximum drawdown	0.61	0.26	+0.35
Martin ratio: Return relative to average drawdown	1.58	0.56	+1.02

VFH vs. KBWP - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.60, which is higher than the KBWP Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of VFH and KBWP, 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. KBWP - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than KBWP's maximum drawdown of -39.76%. Use the drawdown chart below to compare losses from any high point for VFH and KBWP.

Drawdown Indicators

	VFH	KBWP	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-39.76%	-38.85%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-9.56%	-5.19%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-12.29%	-5.01%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-17.00%	-8.66%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-39.76%	-4.66%
Current Drawdown Current decline from peak	-3.32%	-2.75%	-0.57%
Average Drawdown Average peak-to-trough decline	-18.51%	-4.37%	-14.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	4.36%	+1.31%

Volatility

VFH vs. KBWP - Volatility Comparison

The current volatility for Vanguard Financials ETF (VFH) is 4.19%, while Invesco KBW Property & Casualty Insurance ETF (KBWP) has a volatility of 5.82%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than KBWP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	KBWP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.19%	5.82%	-1.63%
Volatility (6M) Calculated over the trailing 6-month period	11.42%	12.07%	-0.65%
Volatility (1Y) Calculated over the trailing 1-year period	14.95%	16.60%	-1.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.26%	18.54%	+0.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.50%	20.73%	+1.77%

VFH vs. KBWP - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is lower than KBWP's 0.35% expense ratio.

Dividends

VFH vs. KBWP - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.47%, less than KBWP's 2.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWP Invesco KBW Property & Casualty Insurance ETF	2.00%	1.58%	1.64%	1.68%	1.99%	3.02%	1.93%	1.99%	2.11%	1.90%	2.14%	1.35%
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 KBWP in my portfolio?

VFH and KBWP have a correlation of 0.50, 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 KBWP?

KBWP has higher volatility (5.82%) compared to VFH (4.19%). In terms of maximum drawdown, VFH dropped -78.61% vs KBWP's -39.76%.

Which ETF is better, VFH or KBWP?

On 10-year performance, VFH leads with 13.51% vs 12.39% for KBWP. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or KBWP?

Over the 10-year period, VFH has performed better with a 13.51% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or KBWP?

VFH is cheaper with a 0.09% expense ratio, compared with 0.35% for KBWP.

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

KBWP has the higher dividend yield at 2.00%, compared with 1.47% for VFH.

What is the main difference between VFH and KBWP?

VFH tracks MSCI US Investable Market Financials 25/50 Index, while KBWP tracks KBW Nasdaq Property & Casualty (TR). They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VFH and 0.35% for KBWP.

Which has better risk-adjusted returns?

VFH currently has the higher Sharpe Ratio (0.60 vs 0.15), 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.