VTI vs. VFH

Last updated Jun 16, 2026

VTI (Vanguard Total Stock Market ETF) and VFH (Vanguard Financials ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 10 years, VTI returned 15.23%/yr vs 13.15%/yr for VFH. Their correlation of 0.82 suggests significant overlap in exposure. VTI charges 0.03%/yr vs 0.09%/yr for VFH.

Performance

VTI vs. VFH - Performance Comparison

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

Returns By Period

In the year-to-date period, VTI achieves a 11.46% return, which is significantly higher than VFH's -1.27% return. Over the past 10 years, VTI has outperformed VFH with an annualized return of 15.23%, while VFH has yielded a comparatively lower 13.15% annualized return.

VTI

• 1D: 1.68%
• 1M: 2.70%
• YTD: 11.46%
• 6M: 11.76%
• 1Y: 28.40%
• 3Y*: 20.94%
• 5Y*: 12.71%
• 10Y*: 15.23%

VFH

• 1D: 0.31%
• 1M: 4.86%
• YTD: -1.27%
• 6M: -1.47%
• 1Y: 10.26%
• 3Y*: 19.61%
• 5Y*: 9.57%
• 10Y*: 13.15%

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

VTI vs. VFH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTI Vanguard Total Stock Market ETF	11.46%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%
VFH Vanguard Financials ETF	-1.27%	14.91%	30.44%	14.17%	-12.31%	35.22%	-1.96%	31.57%	-13.52%	19.99%

Correlation

The correlation between VTI and VFH is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.82

The correlation between VTI and VFH shifts across timeframes, from 0.64 (1 year) to 0.82 (all time), reflecting how their relationship changes across market environments.

VTI vs. VFH - Sectors Allocation Comparison

Sectors	VTI	VFH
Technology	33.3%	2.1%
Financial Services	11.9%	96.8%
Communication Services	10.1%	0.0%
Consumer Cyclical	9.8%	0.0%
Industrials	9.5%	0.2%
Healthcare	9.1%	0.1%
Consumer Defensive	4.7%	-
Energy	3.8%	-
Utilities	2.7%	-
Real Estate	2.4%	0.8%
Basic Materials	2.0%	-

Return for Risk

VTI vs. VFH — Risk / Return Rank

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

VTI

VTI Risk / Return Rank: 77
VTI Sharpe Ratio Rank: 79
VTI Sortino Ratio Rank: 77
VTI Omega Ratio Rank: 78
VTI Calmar Ratio Rank: 70
VTI Martin Ratio Rank: 81

VFH

VFH Risk / Return Rank: 20
VFH Sharpe Ratio Rank: 22
VFH Sortino Ratio Rank: 21
VFH Omega Ratio Rank: 21
VFH Calmar Ratio Rank: 18
VFH Martin Ratio Rank: 19

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.

VTI vs. VFH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) and Vanguard Financials ETF (VFH). 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.

	VTI	VFH	Difference
Sharpe ratio: Return per unit of total volatility	2.25	0.69	+1.56
Sortino ratio: Return per unit of downside risk	3.04	1.02	+2.01
Omega ratio: Gain probability vs. loss probability	1.41	1.13	+0.28
Calmar ratio: Return relative to maximum drawdown	3.20	0.70	+2.50
Martin ratio: Return relative to average drawdown	14.35	1.82	+12.53

VTI vs. VFH - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 2.25, which is higher than the VFH Sharpe Ratio of 0.69. The chart below compares the historical Sharpe Ratios of VTI and VFH, 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

VTI vs. VFH - Drawdown Comparison

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

Drawdown Indicators

	VTI	VFH	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-78.61%	+23.16%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-14.75%	+5.83%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-17.30%	-2.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-25.66%	+0.30%
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	-44.42%	+9.42%
Current Drawdown Current decline from peak	-0.49%	-4.27%	+3.78%
Average Drawdown Average peak-to-trough decline	-8.02%	-18.52%	+10.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	5.65%	-3.67%

Volatility

VTI vs. VFH - Volatility Comparison

Vanguard Total Stock Market ETF (VTI) has a higher volatility of 4.74% compared to Vanguard Financials ETF (VFH) at 4.31%. This indicates that VTI's price experiences larger fluctuations and is considered to be riskier than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTI	VFH	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.74%	4.31%	+0.43%
Volatility (6M) Calculated over the trailing 6-month period	9.94%	11.28%	-1.34%
Volatility (1Y) Calculated over the trailing 1-year period	12.69%	14.94%	-2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.49%	19.34%	-1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.34%	22.56%	-4.22%

VTI vs. VFH - Expense Ratio Comparison

VTI has a 0.03% expense ratio, which is lower than VFH's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTI vs. VFH - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.01%, less than VFH's 1.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFH Vanguard Financials ETF	1.48%	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	1.01%	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 VTI and VFH in my portfolio?

VTI and VFH have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTI or VFH?

VTI has higher volatility (4.74%) compared to VFH (4.31%). In terms of maximum drawdown, VTI dropped -55.45% vs VFH's -78.61%.

Which ETF is better, VTI or VFH?

On 10-year performance, VTI leads with 15.23% vs 13.15% for VFH. On fees, VTI is cheaper at 0.03% per year. On volatility, VFH has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTI or VFH?

Over the 10-year period, VTI has performed better with a 15.23% return vs 13.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTI or VFH?

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

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

VFH has the higher dividend yield at 1.48%, compared with 1.01% for VTI.

What is the main difference between VTI and VFH?

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

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (2.25 vs 0.69), 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.