VFH vs. VGT
Compare and contrast key facts about Vanguard Financials ETF (VFH) and Vanguard Information Technology ETF (VGT).
VFH and VGT 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. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both VFH and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFH or VGT.
Key characteristics
| VFH | VGT | |
|---|---|---|
| YTD Return | 24.36% | 21.81% |
| 1Y Return | 41.15% | 38.01% |
| 3Y Return (Ann) | 6.68% | 10.41% |
| 5Y Return (Ann) | 11.58% | 21.96% |
| 10Y Return (Ann) | 11.17% | 20.44% |
| Sharpe Ratio | 3.53 | 2.03 |
| Sortino Ratio | 4.61 | 2.59 |
| Omega Ratio | 1.61 | 1.36 |
| Calmar Ratio | 2.67 | 2.79 |
| Martin Ratio | 23.07 | 10.08 |
| Ulcer Index | 2.04% | 4.21% |
| Daily Std Dev | 13.31% | 20.90% |
| Max Drawdown | -78.61% | -54.63% |
| Current Drawdown | -2.47% | -3.91% |
Correlation
The correlation between VFH and VGT is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VFH vs. VGT - Performance Comparison
In the year-to-date period, VFH achieves a 24.36% return, which is significantly higher than VGT's 21.81% return. Over the past 10 years, VFH has underperformed VGT with an annualized return of 11.17%, while VGT has yielded a comparatively higher 20.44% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFH vs. VGT - Expense Ratio Comparison
Both VFH and VGT 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%.
Risk-Adjusted Performance
VFH vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Vanguard Information Technology ETF (VGT). 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.
Dividends
VFH vs. VGT - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.73%, more than VGT's 0.64% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.73% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
VGT Vanguard Information Technology ETF | 0.64% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
VFH vs. VGT - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VFH and VGT. For additional features, visit the drawdowns tool.
Volatility
VFH vs. VGT - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.35%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.62%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.