VFH vs. MGV

Last updated Jun 23, 2026

VFH (Vanguard Financials ETF) and MGV (Vanguard Mega Cap Value ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while MGV is a Large Cap Value Equities fund tracking the CRSP US Mega Cap Value Index. Both are passively managed. Over the past 10 years, VFH returned 13.46%/yr vs 13.43%/yr for MGV. Their correlation of 0.88 suggests significant overlap in exposure. VFH charges 0.09%/yr vs 0.05%/yr for MGV.

Performance

VFH vs. MGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Vanguard Mega Cap Value ETF (MGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFH achieves a -0.69% return, which is significantly lower than MGV's 16.85% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 13.46% annualized return and MGV not far behind at 13.43%.

VFH

• 1D: 0.54%
• 1M: 3.75%
• YTD: -0.69%
• 6M: -1.93%
• 1Y: 9.84%
• 3Y*: 20.85%
• 5Y*: 10.29%
• 10Y*: 13.46%

MGV

• 1D: 1.09%
• 1M: 4.51%
• YTD: 16.85%
• 6M: 16.55%
• 1Y: 30.47%
• 3Y*: 19.86%
• 5Y*: 13.34%
• 10Y*: 13.43%

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

VFH vs. MGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-0.69%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
MGV Vanguard Mega Cap Value ETF	16.85%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%

Correlation

The correlation between VFH and MGV is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.88

The correlation between VFH and MGV shifts across timeframes, from 0.72 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

VFH vs. MGV - Sectors Allocation Comparison

Sectors	VFH	MGV
Financial Services	96.8%	22.8%
Technology	2.1%	18.5%
Real Estate	0.8%	1.2%
Industrials	0.2%	13.2%
Healthcare	0.1%	16.0%
Communication Services	0.0%	3.2%
Consumer Cyclical	0.0%	3.4%
Basic Materials	-	2.3%
Consumer Defensive	-	11.0%
Energy	-	6.0%
Utilities	-	2.3%

Return for Risk

VFH vs. MGV — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 18
VFH Sharpe Ratio Rank: 19
VFH Sortino Ratio Rank: 18
VFH Omega Ratio Rank: 18
VFH Calmar Ratio Rank: 16
VFH Martin Ratio Rank: 16

MGV

MGV Risk / Return Rank: 90
MGV Sharpe Ratio Rank: 92
MGV Sortino Ratio Rank: 92
MGV Omega Ratio Rank: 89
MGV Calmar Ratio Rank: 87
MGV Martin Ratio Rank: 88

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. MGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Vanguard Mega Cap Value ETF (MGV). 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	MGV	Difference
Sharpe ratio: Return per unit of total volatility	0.66	3.02	-2.36
Sortino ratio: Return per unit of downside risk	0.99	4.27	-3.29
Omega ratio: Gain probability vs. loss probability	1.12	1.54	-0.42
Calmar ratio: Return relative to maximum drawdown	0.67	4.77	-4.10
Martin ratio: Return relative to average drawdown	1.74	18.12	-16.38

VFH vs. MGV - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.66, which is lower than the MGV Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of VFH and MGV, 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. MGV - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than MGV's maximum drawdown of -56.07%. Use the drawdown chart below to compare losses from any high point for VFH and MGV.

Drawdown Indicators

	VFH	MGV	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-56.07%	-22.54%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-6.42%	-8.33%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-13.18%	-4.12%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-16.54%	-9.12%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-35.41%	-9.01%
Current Drawdown Current decline from peak	-3.71%	0.00%	-3.71%
Average Drawdown Average peak-to-trough decline	-18.51%	-7.78%	-10.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	1.69%	+3.98%

Volatility

VFH vs. MGV - Volatility Comparison

Vanguard Financials ETF (VFH) has a higher volatility of 4.19% compared to Vanguard Mega Cap Value ETF (MGV) at 3.32%. This indicates that VFH's price experiences larger fluctuations and is considered to be riskier than MGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	MGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.19%	3.32%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	11.41%	7.77%	+3.64%
Volatility (1Y) Calculated over the trailing 1-year period	14.98%	10.15%	+4.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.26%	13.57%	+5.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.56%	16.36%	+6.20%

VFH vs. MGV - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is higher than MGV's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFH vs. MGV - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.47%, less than MGV's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.82%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
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 MGV in my portfolio?

VFH and MGV have a correlation of 0.72, 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 MGV?

VFH has higher volatility (4.19%) compared to MGV (3.32%). In terms of maximum drawdown, VFH dropped -78.61% vs MGV's -56.07%.

Which ETF is better, VFH or MGV?

On 10-year performance, VFH leads with 13.46% vs 13.43% for MGV. On fees, MGV is cheaper at 0.05% per year. On volatility, MGV has been the lower-risk option at 3.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or MGV?

Over the 10-year period, VFH has performed better with a 13.46% return vs 13.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or MGV?

MGV is cheaper with a 0.05% expense ratio, compared with 0.09% for VFH.

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

MGV has the higher dividend yield at 1.82%, compared with 1.47% for VFH.

What is the main difference between VFH and MGV?

VFH is categorized as Financials Equities, while MGV is Large Cap Value Equities. VFH tracks MSCI US Investable Market Financials 25/50 Index, while MGV tracks CRSP US Mega Cap Value Index. Their fees differ too: 0.09% for VFH and 0.05% for MGV.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (3.02 vs 0.66), 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.