VFH vs. VTI

Last updated Aug 5, 2026

VFH (Vanguard Financials ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, VFH returned 13.37%/yr vs 14.87%/yr for VTI. Their correlation of 0.81 means they have usually moved in the same direction. VFH charges 0.09%/yr vs 0.03%/yr for VTI.

Performance

VFH vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) and Vanguard Total Stock Market ETF (VTI). 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 VTI's 14.27% return. Over the past 10 years, VFH has underperformed VTI with an annualized return of 13.37%, while VTI has yielded a comparatively higher 14.87% annualized 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%

VTI

• 1D: 1.87%
• 1M: 3.27%
• 6M: 12.73%
• YTD: 14.27%
• 1Y: 24.07%
• 3Y*: 21.13%
• 5Y*: 12.31%
• 10Y*: 14.87%
• ALL TIME*: 9.72%

*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)
VFH Vanguard Financials ETF	$53.77M	$71.76M	$72.54M
VTI Vanguard Total Stock Market ETF	$1.13B	$1.17B	$1.24B

VFH vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFH Vanguard Financials ETF	7.22%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%
VTI Vanguard Total Stock Market ETF	14.27%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between VFH and VTI is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.56
Correlation (3Y) Balances recent behavior with more history.	0.68
Correlation (5Y) Shows whether the relationship held over a longer period.	0.76
Correlation (10Y) Provides a long-term view across more market conditions.	0.75
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.81

Over the past year, the correlation between VFH and VTI has dropped to 0.56 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

VFH vs. VTI - Sectors Allocation Comparison

Sectors	VFH	VTI
Financial Services	97.0%	11.8%
Technology	2.0%	36.1%
Real Estate	0.8%	2.3%
Industrials	0.2%	10.2%
Healthcare	0.1%	9.7%
Communication Services	0.0%	9.1%
Consumer Cyclical	0.0%	9.4%
Basic Materials	-	1.9%
Consumer Defensive	-	4.3%
Energy	-	3.2%
Utilities	-	2.2%

Return for Risk

VFH vs. VTI — 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

VTI

VTI Risk / Return Rank: 72
VTI Sharpe Ratio Rank: 72
VTI Sortino Ratio Rank: 70
VTI Omega Ratio Rank: 70
VTI Calmar Ratio Rank: 70
VTI Martin Ratio Rank: 80

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. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Vanguard Total Stock Market ETF (VTI). 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	VTI	Difference
Sharpe ratio: Return per unit of total volatility	0.93	1.85	-0.92
Sortino ratio: Return per unit of downside risk	1.34	2.55	-1.21
Omega ratio: Gain probability vs. loss probability	1.17	1.33	-0.16
Calmar ratio: Return relative to maximum drawdown	0.94	2.71	-1.77
Martin ratio: Return relative to average drawdown	2.45	11.68	-9.24

VFH vs. VTI - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.93, which is lower than the VTI Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of VFH and VTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VFH vs. VTI - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than VTI's maximum drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VFH and VTI.

Drawdown Indicators

	VFH	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-55.45%	-23.16%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	-8.92%	-5.83%
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	-19.30%	+2.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-25.36%	-0.30%
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	-35.00%	-9.42%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-18.42%	-7.98%	-10.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	2.07%	+3.60%

Volatility

VFH vs. VTI - Volatility Comparison

Vanguard Financials ETF (VFH) and Vanguard Total Stock Market ETF (VTI) have volatilities of 3.94% and 4.13%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFH	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	4.13%	-0.19%
Volatility (6M) Calculated over the trailing 6-month period	11.22%	10.47%	+0.75%
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	13.18%	+1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.13%	17.54%	+1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.48%	18.32%	+4.16%

VFH vs. VTI - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is higher than VTI's 0.03% expense ratio. However, 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. VTI - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.64%, more than VTI's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VTI Vanguard Total Stock Market ETF	1.02%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VFH and VTI in my portfolio?

VFH and VTI have a correlation of 0.56, 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 VTI?

VTI has higher volatility (4.13%) compared to VFH (3.94%). In terms of maximum drawdown, VFH dropped -78.61% vs VTI's -55.45%.

Which ETF is better, VFH or VTI?

On 10-year performance, VTI leads with 14.87% vs 13.37% for VFH. On fees, VTI is cheaper at 0.03% per year. On volatility, VFH has been the lower-risk option at 3.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFH or VTI?

Over the 10-year period, VTI has performed better with a 14.87% return vs 13.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFH or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.09% for VFH.

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

VFH has the higher dividend yield at 1.64%, compared with 1.02% for VTI.

What is the main difference between VFH and VTI?

VFH is categorized as Financials Equities, while VTI is Large Cap Blend Equities. VFH tracks MSCI US Investable Market Financials 25/50 Index, while VTI tracks CRSP US Total Market Index. Their fees differ too: 0.09% for VFH and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.85 vs 0.93), 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.