VFH vs. PBEU

Last updated Aug 5, 2026

VFH (Vanguard Financials ETF) and PBEU (Portfolio Building Block European Banks Index ETF) are both Financials Equities funds - VFH tracks the MSCI US Investable Market Financials 25/50 Index while PBEU tracks the BITA European Banks Index. Both are passively managed. Their 0.53 correlation means they have sometimes moved together and sometimes differently. VFH charges 0.09%/yr vs 0.13%/yr for PBEU.

Performance

VFH vs. PBEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Portfolio Building Block European Banks Index ETF (PBEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFH achieves a 7.22% return, which is significantly lower than PBEU's 24.05% return.

VFH

• 1D: 0.89%
• 1M: 4.10%
• 6M: 9.11%
• YTD: 7.22%
• 1Y: 13.83%
• 3Y*: 20.82%
• 5Y*: 11.42%
• 10Y*: 13.37%
• ALL TIME*: 7.02%

PBEU

• 1D: 0.28%
• 1M: 7.57%
• 6M: 13.88%
• YTD: 24.05%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PBEU Portfolio Building Block European Banks Index ETF	$1.21M	$1.55M	$5.52M
VFH Vanguard Financials ETF	$53.77M	$71.76M	$72.54M

VFH vs. PBEU - Yearly Performance Comparison

	2026 (YTD)	2025
VFH Vanguard Financials ETF	7.22%	6.09%
PBEU Portfolio Building Block European Banks Index ETF	24.05%	11.42%

Correlation

The correlation between VFH and PBEU is 0.53, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 25, 2025	0.53

Return for Risk

VFH vs. PBEU — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VFH

VFH Risk / Return Rank: 31
VFH Sharpe Ratio Rank: 34
VFH Sortino Ratio Rank: 32
VFH Omega Ratio Rank: 32
VFH Calmar Ratio Rank: 27
VFH Martin Ratio Rank: 27

PBEU

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VFH vs. PBEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Portfolio Building Block European Banks Index ETF (PBEU). 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	PBEU	Difference
Sharpe ratio: Return per unit of total volatility	0.93	—	—
Sortino ratio: Return per unit of downside risk	1.34	—	—
Omega ratio: Gain probability vs. loss probability	1.17	—	—
Calmar ratio: Return relative to maximum drawdown	0.94	—	—
Martin ratio: Return relative to average drawdown	2.45	—	—

Drawdowns

VFH vs. PBEU - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than PBEU's maximum drawdown of -17.26%. Use the drawdown chart below to compare losses from any high point for VFH and PBEU.

Drawdown Indicators

	VFH	PBEU	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-17.26%	-61.35%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-18.42%	-3.50%	-14.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	—	—

Volatility

Volatility by Period

	VFH	PBEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	—	—
Volatility (6M) Calculated over the trailing 6-month period	11.22%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	27.23%	-12.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.13%	27.23%	-8.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.48%	27.23%	-4.75%

VFH vs. PBEU - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is lower than PBEU's 0.13% expense ratio. Despite the difference, 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. PBEU - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.64%, more than PBEU's 0.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PBEU Portfolio Building Block European Banks Index ETF	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VFH Vanguard Financials ETF	1.64%	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 PBEU in my portfolio?

VFH and PBEU have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VFH or PBEU?

On fees, VFH is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VFH or PBEU?

VFH is cheaper with a 0.09% expense ratio, compared with 0.13% for PBEU.

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

VFH has the higher dividend yield at 1.64%, compared with 0.01% for PBEU.

What is the main difference between VFH and PBEU?

VFH tracks MSCI US Investable Market Financials 25/50 Index, while PBEU tracks BITA European Banks Index. They also come from different issuers: Vanguard and Portfolio Building Block. Their fees differ too: 0.09% for VFH and 0.13% for PBEU.