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VFH vs. RWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VFH vs. RWJ

Last updated Jun 13, 2026

VFH (Vanguard Financials ETF) and RWJ (Invesco S&P SmallCap 600 Revenue ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while RWJ is a Small Cap Value Equities fund tracking the S&P SmallCap 600 Revenue-Weighted Index. Both are passively managed. Over the past 10 years, VFH returned 13.15%/yr vs 13.64%/yr for RWJ. A 0.76 correlation means they provide meaningful diversification when combined. VFH charges 0.09%/yr vs 0.39%/yr for RWJ.

Performance

VFH vs. RWJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Invesco S&P SmallCap 600 Revenue ETF (RWJ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VFH achieves a -1.58% return, which is significantly lower than RWJ's 21.05% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 13.15% annualized return and RWJ not far ahead at 13.64%.

VFH

1D
1.34%
1M
4.13%
YTD
-1.58%
6M
-1.74%
1Y
9.92%
3Y*
19.69%
5Y*
9.36%
10Y*
13.15%

RWJ

1D
1.08%
1M
7.83%
YTD
21.05%
6M
17.99%
1Y
42.98%
3Y*
17.13%
5Y*
8.52%
10Y*
13.64%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VFH vs. RWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VFH
Vanguard Financials ETF		-1.58%14.91%30.44%14.17%-12.31%35.22%-1.96%31.57%-13.52%19.99%
RWJ
Invesco S&P SmallCap 600 Revenue ETF		21.05%7.75%11.81%16.21%-10.97%52.82%20.83%20.29%-16.95%5.30%

Correlation

The correlation between VFH and RWJ is 0.68, 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

0.68

Correlation (3Y)
Calculated over the trailing 3-year period

0.75

Correlation (5Y)
Calculated over the trailing 5-year period

0.79

Correlation (10Y)
Calculated over the trailing 10-year period

0.76

Correlation (All Time)
Calculated using the full available price history since Feb 22, 2008

0.76

The correlation between VFH and RWJ shifts across timeframes, from 0.68 (1 year) to 0.79 (5 years), reflecting how their relationship changes across market environments.

VFH vs. RWJ - Sectors Allocation Comparison

Sectors
VFH
RWJ

Financial Services

96.8%
11.0%

Technology

2.1%
9.9%

Real Estate

0.8%
4.0%

Industrials

0.2%
16.2%

Healthcare

0.1%
11.2%

Communication Services

0.0%
3.3%

Consumer Cyclical

0.0%
23.9%

Basic Materials

-

5.2%

Consumer Defensive

-

6.9%

Energy

-

7.4%

Utilities

-

0.9%

Financial Services

VFH
96.8%
RWJ
11.0%

Technology

VFH
2.1%
RWJ
9.9%

Real Estate

VFH
0.8%
RWJ
4.0%

Industrials

VFH
0.2%
RWJ
16.2%

Healthcare

VFH
0.1%
RWJ
11.2%

Communication Services

VFH
0.0%
RWJ
3.3%

Consumer Cyclical

VFH
0.0%
RWJ
23.9%

Basic Materials

VFH

-

RWJ
5.2%

Consumer Defensive

VFH

-

RWJ
6.9%

Energy

VFH

-

RWJ
7.4%

Utilities

VFH

-

RWJ
0.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Financials ETF

Invesco S&P SmallCap 600 Revenue ETF

Often compared with VFH:
VFH vs. XLFVFH vs. VOOVFH vs. FNCLVFH vs. IYFVFH vs. VHTVFH vs. KBWBVFH vs. VGT
Often compared with RWJ:
RWJ vs. AVUVXRWJ vs. XSVMRWJ vs. RZVRWJ vs. RWKRWJ vs. CALFRWJ vs. RFVRWJ vs. FSMD

Return for Risk

VFH vs. RWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VFH
VFH Risk / Return Rank: 1717
Overall Rank
VFH Sharpe Ratio Rank: 1818
Sharpe Ratio Rank
VFH Sortino Ratio Rank: 1717
Sortino Ratio Rank
VFH Omega Ratio Rank: 1717
Omega Ratio Rank
VFH Calmar Ratio Rank: 1616
Calmar Ratio Rank
VFH Martin Ratio Rank: 1616
Martin Ratio Rank
RWJ
RWJ Risk / Return Rank: 7474
Overall Rank
RWJ Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
RWJ Sortino Ratio Rank: 7777
Sortino Ratio Rank
RWJ Omega Ratio Rank: 6969
Omega Ratio Rank
RWJ Calmar Ratio Rank: 7878
Calmar Ratio Rank
RWJ Martin Ratio Rank: 7171
Martin Ratio Rank
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. RWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Invesco S&P SmallCap 600 Revenue ETF (RWJ). 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.

VFHRWJDifference
Sharpe ratioReturn per unit of total volatility
0.51
2.07

-1.56

Sortino ratioReturn per unit of downside risk
0.78
2.95

-2.17

Omega ratioGain probability vs. loss probability

1.10

1.35

-0.26

Calmar ratioReturn relative to maximum drawdown

0.52

3.56

-3.04

Martin ratioReturn relative to average drawdown

1.35

11.43

-10.07

VFH vs. RWJ - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.51, which is lower than the RWJ Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VFH and RWJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VFH vs. RWJ - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than RWJ's maximum drawdown of -55.97%. Use the drawdown chart below to compare losses from any high point for VFH and RWJ.

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Drawdown Indicators

VFHRWJDifference

Max Drawdown

Largest peak-to-trough decline

-78.61%

-55.97%

-22.64%

Max Drawdown (1Y)

Largest decline over 1 year

-14.75%

-11.31%

-3.44%

Max Drawdown (3Y)

Largest decline over 3 years

-17.30%

-29.29%

+11.99%

Max Drawdown (5Y)

Largest decline over 5 years

-25.66%

-29.29%

+3.63%

Max Drawdown (10Y)

Largest decline over 10 years

-44.42%

-51.33%

+6.91%

Current Drawdown

Current decline from peak

-4.57%

0.00%

-4.57%

Average Drawdown

Average peak-to-trough decline

-18.52%

-9.22%

-9.30%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.65%

3.52%

+2.13%

Volatility

VFH vs. RWJ - Volatility Comparison

The current volatility for Vanguard Financials ETF (VFH) is 4.33%, while Invesco S&P SmallCap 600 Revenue ETF (RWJ) has a volatility of 4.67%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than RWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VFHRWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.33%

4.67%

-0.34%

Volatility (6M)

Calculated over the trailing 6-month period

11.41%

12.46%

-1.05%

Volatility (1Y)

Calculated over the trailing 1-year period

15.06%

19.48%

-4.42%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.34%

23.71%

-4.37%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.55%

26.14%

-3.59%

VFH vs. RWJ - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is lower than RWJ's 0.39% expense ratio.

Dividends

VFH vs. RWJ - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.48%, more than RWJ's 0.97% yield.

PositionTTM20252024202320222021202020192018201720162015
RWJ
Invesco S&P SmallCap 600 Revenue ETF		0.97%1.11%1.15%1.34%1.02%0.61%0.89%1.22%1.44%1.11%0.60%0.74%
VFH
Vanguard Financials ETF		1.48%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

VFH and RWJ have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

RWJ has higher volatility (4.67%) compared to VFH (4.33%). In terms of maximum drawdown, VFH dropped -78.61% vs RWJ's -55.97%.

On 10-year performance, RWJ leads with 13.64% vs 13.15% for VFH. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, RWJ has performed better with a 13.64% return vs 13.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VFH is cheaper with a 0.09% expense ratio, compared with 0.39% for RWJ.

VFH has the higher dividend yield at 1.48%, compared with 0.97% for RWJ.

VFH is categorized as Financials Equities, while RWJ is Small Cap Value Equities. VFH tracks MSCI US Investable Market Financials 25/50 Index, while RWJ tracks S&P SmallCap 600 Revenue-Weighted Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VFH and 0.39% for RWJ.

RWJ currently has the higher Sharpe Ratio (2.07 vs 0.51), 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.

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