VFH vs. VPU

Last updated Jun 9, 2026

VFH (Vanguard Financials ETF) and VPU (Vanguard Utilities ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index. Both are passively managed. Over the past 10 years, VFH returned 12.59%/yr vs 8.85%/yr for VPU. At a 0.43 correlation, their price movements are largely independent. Both charge a 0.09% expense ratio.

Performance

VFH vs. VPU - Performance Comparison

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

Returns By Period

In the year-to-date period, VFH achieves a -4.26% return, which is significantly lower than VPU's 2.68% return. Over the past 10 years, VFH has outperformed VPU with an annualized return of 12.59%, while VPU has yielded a comparatively lower 8.85% annualized return.

VFH

• 1D: -0.53%
• 1M: 1.01%
• YTD: -4.26%
• 6M: -1.64%
• 1Y: 4.15%
• 3Y*: 18.86%
• 5Y*: 8.65%
• 10Y*: 12.59%

VPU

• 1D: -1.87%
• 1M: -2.65%
• YTD: 2.68%
• 6M: 3.11%
• 1Y: 10.68%
• 3Y*: 12.74%
• 5Y*: 8.91%
• 10Y*: 8.85%

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

VFH vs. VPU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	-4.26%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
VPU Vanguard Utilities ETF	2.68%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%

Correlation

The correlation between VFH and VPU is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.43

Over the past year, the correlation between VFH and VPU has dropped to 0.19 - well below their long-term average of 0.43, suggesting their price drivers have been diverging.

VFH vs. VPU - Sectors Allocation Comparison

Sectors	VFH	VPU
Financial Services	96.8%	-
Technology	2.1%	-
Real Estate	0.8%	-
Industrials	0.2%	0.2%
Healthcare	0.1%	-
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	0.5%
Utilities	-	99.3%

Return for Risk

VFH vs. VPU — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 13
VFH Sharpe Ratio Rank: 14
VFH Sortino Ratio Rank: 13
VFH Omega Ratio Rank: 13
VFH Calmar Ratio Rank: 13
VFH Martin Ratio Rank: 13

VPU

VPU Risk / Return Rank: 23
VPU Sharpe Ratio Rank: 23
VPU Sortino Ratio Rank: 22
VPU Omega Ratio Rank: 22
VPU Calmar Ratio Rank: 27
VPU Martin Ratio Rank: 22

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. VPU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Vanguard Utilities ETF (VPU). 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	VPU	Difference
Sharpe ratio: Return per unit of total volatility	0.28	0.75	-0.47
Sortino ratio: Return per unit of downside risk	0.48	1.09	-0.61
Omega ratio: Gain probability vs. loss probability	1.06	1.14	-0.08
Calmar ratio: Return relative to maximum drawdown	0.28	1.20	-0.92
Martin ratio: Return relative to average drawdown	0.74	2.66	-1.92
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. VPU - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.28, which is lower than the VPU Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of VFH and VPU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VFH	VPU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.28	0.75	-0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.52	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.46	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.53	-0.29

Drawdowns

VFH vs. VPU - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than VPU's maximum drawdown of -46.31%. Use the drawdown chart below to compare losses from any high point for VFH and VPU.

Drawdown Indicators

	VFH	VPU	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-46.31%	-32.30%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-8.90%	-5.85%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-17.34%	+0.04%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-25.15%	-0.51%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-36.42%	-8.00%
Current Drawdown Current decline from peak	-7.17%	-7.71%	+0.54%
Average Drawdown Average peak-to-trough decline	-18.53%	-7.78%	-10.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.60%	4.02%	+1.58%

Volatility

VFH vs. VPU - Volatility Comparison

The current volatility for Vanguard Financials ETF (VFH) is 4.28%, while Vanguard Utilities ETF (VPU) has a volatility of 5.56%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than VPU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	VPU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	5.56%	-1.28%
Volatility (6M) Calculated over the trailing 6-month period	11.34%	11.53%	-0.19%
Volatility (1Y) Calculated over the trailing 1-year period	14.98%	14.38%	+0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.34%	17.07%	+2.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.56%	19.14%	+3.42%

VFH vs. VPU - Expense Ratio Comparison

Both VFH and VPU have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VFH vs. VPU - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.53%, less than VPU's 2.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFH Vanguard Financials ETF	1.53%	1.55%	1.75%	2.08%	2.31%	1.87%	2.21%	2.17%	2.30%	1.53%	1.63%	2.00%
VPU Vanguard Utilities ETF	2.70%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%

Frequently Asked Questions

Can I hold both VFH and VPU in my portfolio?

VFH and VPU have a correlation of 0.19, 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 VPU?

VPU has higher volatility (5.56%) compared to VFH (4.28%). In terms of maximum drawdown, VFH dropped -78.61% vs VPU's -46.31%.

Which ETF is better, VFH or VPU?

On 10-year performance, VFH leads with 12.59% vs 8.85% for VPU. Both ETFs have the same 0.09% expense ratio. On volatility, VFH has been the lower-risk option at 4.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or VPU?

Over the 10-year period, VFH has performed better with a 12.59% return vs 8.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or VPU?

VFH and VPU have the same expense ratio: 0.09% per year.

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

VPU has the higher dividend yield at 2.70%, compared with 1.53% for VFH.

What is the main difference between VFH and VPU?

VFH is categorized as Financials Equities, while VPU is Utilities Equities. VFH tracks MSCI US Investable Market Financials 25/50 Index, while VPU tracks MSCI US Investable Market Utilities 25/50 Index.

Which has better risk-adjusted returns?

VPU currently has the higher Sharpe Ratio (0.75 vs 0.28), 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.