VFH vs. VCR

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Financials ETF (VFH) and Vanguard Consumer Discretionary ETF (VCR).

VFH and VCR are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. VCR is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index. It was launched on Jan 26, 2004. Both VFH and VCR are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VFH vs. VCR - Performance Comparison

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

VFH vs. VCR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-9.19%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
VCR Vanguard Consumer Discretionary ETF	-7.95%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%

Returns By Period

In the year-to-date period, VFH achieves a -9.19% return, which is significantly lower than VCR's -7.95% return. Both investments have delivered pretty close results over the past 10 years, with VFH having a 12.30% annualized return and VCR not far ahead at 12.56%.

VFH

• 1D: 0.02%
• 1M: -3.54%
• YTD: -9.19%
• 6M: -6.32%
• 1Y: 2.78%
• 3Y*: 17.95%
• 5Y*: 9.33%
• 10Y*: 12.30%

VCR

• 1D: 0.80%
• 1M: -4.51%
• YTD: -7.95%
• 6M: -8.86%
• 1Y: 10.82%
• 3Y*: 13.67%
• 5Y*: 4.88%
• 10Y*: 12.56%

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

VFH vs. VCR - Expense Ratio Comparison

Both VFH and VCR have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

VFH

Vanguard Financials ETF

VCR

Vanguard Consumer Discretionary ETF

Return for Risk

VFH vs. VCR — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 15
VFH Sharpe Ratio Rank: 15
VFH Sortino Ratio Rank: 14
VFH Omega Ratio Rank: 15
VFH Calmar Ratio Rank: 15
VFH Martin Ratio Rank: 16

VCR

VCR Risk / Return Rank: 27
VCR Sharpe Ratio Rank: 24
VCR Sortino Ratio Rank: 27
VCR Omega Ratio Rank: 25
VCR Calmar Ratio Rank: 30
VCR Martin Ratio Rank: 29

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. VCR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Vanguard Consumer Discretionary ETF (VCR). 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	VCR	Difference
Sharpe ratio Return per unit of total volatility	0.14	0.45	-0.31
Sortino ratio Return per unit of downside risk	0.32	0.83	-0.51
Omega ratio Gain probability vs. loss probability	1.05	1.11	-0.06
Calmar ratio Return relative to maximum drawdown	0.18	0.77	-0.59
Martin ratio Return relative to average drawdown	0.54	2.51	-1.97
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. VCR - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.14, which is lower than the VCR Sharpe Ratio of 0.45. The chart below compares the historical Sharpe Ratios of VFH and VCR, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VFH	VCR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.14	0.45	-0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.20	+0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.56	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.49	-0.26

Correlation

The correlation between VFH and VCR is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VFH vs. VCR - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.61%, more than VCR's 0.79% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFH Vanguard Financials ETF	1.61%	1.55%	1.75%	2.08%	2.31%	1.87%	2.21%	2.17%	2.30%	1.53%	1.63%	2.00%
VCR Vanguard Consumer Discretionary ETF	0.79%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%

Drawdowns

VFH vs. VCR - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than VCR's maximum drawdown of -61.54%. Use the drawdown chart below to compare losses from any high point for VFH and VCR.

Drawdown Indicators

	VFH	VCR	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-61.54%	-17.07%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-15.59%	+0.84%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-39.20%	+13.54%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-39.20%	-5.22%
Current Drawdown Current decline from peak	-11.95%	-12.14%	+0.19%
Average Drawdown Average peak-to-trough decline	-18.62%	-9.43%	-9.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.99%	4.78%	+0.21%

Volatility

VFH vs. VCR - Volatility Comparison

The current volatility for Vanguard Financials ETF (VFH) is 4.85%, while Vanguard Consumer Discretionary ETF (VCR) has a volatility of 7.41%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than VCR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	VCR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.85%	7.41%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	11.75%	13.96%	-2.21%
Volatility (1Y) Calculated over the trailing 1-year period	19.93%	24.28%	-4.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.37%	23.94%	-4.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.55%	22.33%	+0.22%