VFH vs. VTI
Compare and contrast key facts about Vanguard Financials ETF (VFH) and Vanguard Total Stock Market ETF (VTI).
VFH and VTI 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. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001. Both VFH and VTI 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 VTI.
Key characteristics
| VFH | VTI | |
|---|---|---|
| YTD Return | 23.69% | 19.97% |
| 1Y Return | 40.39% | 32.68% |
| 3Y Return (Ann) | 6.40% | 6.79% |
| 5Y Return (Ann) | 11.39% | 14.34% |
| 10Y Return (Ann) | 11.10% | 12.37% |
| Sharpe Ratio | 3.25 | 2.76 |
| Sortino Ratio | 4.24 | 3.67 |
| Omega Ratio | 1.55 | 1.51 |
| Calmar Ratio | 2.49 | 3.66 |
| Martin Ratio | 20.83 | 17.63 |
| Ulcer Index | 2.05% | 1.94% |
| Daily Std Dev | 13.06% | 12.35% |
| Max Drawdown | -78.61% | -55.45% |
| Current Drawdown | -3.00% | -2.48% |
Correlation
The correlation between VFH and VTI is 0.83, 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.
Performance
VFH vs. VTI - Performance Comparison
In the year-to-date period, VFH achieves a 23.69% return, which is significantly higher than VTI's 19.97% return. Over the past 10 years, VFH has underperformed VTI with an annualized return of 11.10%, while VTI has yielded a comparatively higher 12.37% 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. VTI - Expense Ratio Comparison
VFH has a 0.10% 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%.
Risk-Adjusted Performance
VFH vs. VTI - Risk-Adjusted Performance 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.
Dividends
VFH vs. VTI - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.74%, more than VTI's 1.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.74% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
VTI Vanguard Total Stock Market ETF | 1.33% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
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. For additional features, visit the drawdowns tool.
Volatility
VFH vs. VTI - Volatility Comparison
Vanguard Financials ETF (VFH) has a higher volatility of 4.10% compared to Vanguard Total Stock Market ETF (VTI) at 3.10%. This indicates that VFH's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.