VFH vs. KWT

Last updated Jun 4, 2026

VFH (Vanguard Financials ETF) and KWT (iShares MSCI Kuwait ETF) are both Financials Equities funds - VFH tracks the MSCI US Investable Market Financials 25/50 Index while KWT tracks the MSCI All Kuwait Select Size Liquidity Capped Index. Both are passively managed. Over the past 5 years, VFH returned 7.83%/yr vs 9.17%/yr for KWT. At a 0.35 correlation, their price movements are largely independent. VFH charges 0.10%/yr vs 0.74%/yr for KWT.

Performance

VFH vs. KWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and iShares MSCI Kuwait ETF (KWT). 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 KWT's -1.30% return.

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%

KWT

• 1D: -0.59%
• 1M: -1.54%
• YTD: -1.30%
• 6M: -1.08%
• 1Y: 6.41%
• 3Y*: 10.61%
• 5Y*: 9.17%
• 10Y*: —

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

VFH vs. KWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VFH Vanguard Financials ETF	-6.40%	14.91%	30.44%	14.17%	-12.31%	35.22%	20.30%
KWT iShares MSCI Kuwait ETF	-1.30%	25.38%	11.29%	-4.71%	5.16%	30.73%	9.07%

Correlation

The correlation between VFH and KWT is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 4, 2020	0.35

VFH vs. KWT - Sectors Allocation Comparison

Sectors	VFH	KWT
Financial Services	96.8%	64.4%
Technology	2.1%	-
Real Estate	0.8%	11.0%
Industrials	0.2%	10.8%
Healthcare	0.1%	-
Communication Services	0.0%	6.3%
Consumer Cyclical	0.0%	2.2%
Basic Materials	-	1.6%
Consumer Defensive	-	2.7%
Energy	-	-
Utilities	-	1.0%

Return for Risk

VFH vs. KWT — 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

KWT

KWT Risk / Return Rank: 16
KWT Sharpe Ratio Rank: 16
KWT Sortino Ratio Rank: 16
KWT Omega Ratio Rank: 16
KWT Calmar Ratio Rank: 16
KWT Martin Ratio Rank: 15

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. KWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and iShares MSCI Kuwait ETF (KWT). 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	KWT	Difference
Sharpe ratio Return per unit of total volatility	0.16	0.47	-0.30
Sortino ratio Return per unit of downside risk	0.32	0.74	-0.43
Omega ratio Gain probability vs. loss probability	1.04	1.10	-0.06
Calmar ratio Return relative to maximum drawdown	0.16	0.56	-0.39
Martin ratio Return relative to average drawdown	0.43	1.33	-0.89
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. KWT - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.16, which is lower than the KWT Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of VFH and KWT, 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	KWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.16	0.47	-0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.68	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.90	-0.66

Drawdowns

VFH vs. KWT - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than KWT's maximum drawdown of -24.37%. Use the drawdown chart below to compare losses from any high point for VFH and KWT.

Drawdown Indicators

	VFH	KWT	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-24.37%	-54.24%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-11.54%	-3.21%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-15.72%	-1.58%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-24.37%	-1.29%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	—	—
Current Drawdown Current decline from peak	-9.24%	-6.07%	-3.17%
Average Drawdown Average peak-to-trough decline	-18.54%	-7.30%	-11.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.55%	4.85%	+0.70%

Volatility

VFH vs. KWT - Volatility Comparison

Vanguard Financials ETF (VFH) has a higher volatility of 3.34% compared to iShares MSCI Kuwait ETF (KWT) at 3.16%. This indicates that VFH's price experiences larger fluctuations and is considered to be riskier than KWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	KWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.34%	3.16%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	11.10%	11.64%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	14.79%	13.84%	+0.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.31%	13.61%	+5.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.54%	13.93%	+8.61%

VFH vs. KWT - Expense Ratio Comparison

VFH has a 0.10% expense ratio, which is lower than KWT's 0.74% expense ratio.

Dividends

VFH vs. KWT - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.56%, less than KWT's 5.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KWT iShares MSCI Kuwait ETF	5.47%	5.40%	6.09%	2.25%	5.87%	7.65%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%
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 KWT in my portfolio?

VFH and KWT have a correlation of 0.28, 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 KWT?

VFH has higher volatility (3.34%) compared to KWT (3.16%). In terms of maximum drawdown, VFH dropped -78.61% vs KWT's -24.37%.

Which ETF is better, VFH or KWT?

On 5-year performance, KWT leads with 9.17% vs 7.83% for VFH. On fees, VFH is cheaper at 0.10% per year. On volatility, KWT has been the lower-risk option at 3.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or KWT?

Over the 5-year period, KWT has performed better with a 9.17% return vs 7.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or KWT?

VFH is cheaper with a 0.10% expense ratio, compared with 0.74% for KWT.

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

KWT has the higher dividend yield at 5.47%, compared with 1.56% for VFH.

What is the main difference between VFH and KWT?

VFH tracks MSCI US Investable Market Financials 25/50 Index, while KWT tracks MSCI All Kuwait Select Size Liquidity Capped Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.10% for VFH and 0.74% for KWT.

Which has better risk-adjusted returns?

KWT currently has the higher Sharpe Ratio (0.47 vs 0.16), 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.