Vanguard Financials Index Fund ETF Shares (NYSE:VFH) seeks to track the performance of a benchmark index. The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Financials 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the financials sector, as classified under the Global Industry Classification Standard (GICS). The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

finviz dynamic chart for VFH

Fund Overview

  • Net Assets 11.58 Billions
  • YTD Daily Total Return 31.49%
  • Yield 1.75%
  • Annual Expense Ratio 0.10%

Performance Overview

  • 31.49% YTD Daily Total Return
  • 57.55% 1-Year Daily Total Return
  • 13.27% 3-Year Daily Total Return

Launched in 2004, the fund has a track record spanning over a decade and a proven history of performance.

  • Cost. Investors pay an annual cost of just 0.10%, making it one of the lowest-cost options seen among any exchange-traded fund in any sector.
  • Dividends. With a dividend yield of 1.75%, the fund offers reliable income for those taking advantage of income investing strategies. Moreover, dividends can be reinvested to increase holdings and maximize earnings potential.
  • Volatility. The financial sector isn’t especially volatile as a whole. However, the fund offers diversified exposure to the sector, including fintech companies, some of which do experience rapid price movements. While the larger, more stable holdings in the fund limit the volatility experienced, investors should pay close attention to economic data releases and U.S. Federal Reserve statements for clues as to where the ETF is headed.
  • Assets Under Management. The fund has attracted more than $11.58 billion from the investing community. With such a large amount of assets piled into the fund, it’s clearly a popular option among investors.
  • Asset Allocation. As mentioned above, the fund is designed to provide diversified exposure to the financial industry as a whole. Some of the largest holdings in the fund include JPMorgan Chase (JPM), Berkshire Hathaway (BRK.B), Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C).
  • Historic Performance. The fund has been a strong performer since inception, with 10 years in the green and six closing in the red. Over the past year, investors have enjoyed gains of more than 60%, with the past three and five years producing annualized gains of 12.86% and 16.23%, respectively.

Top 10 Holdings (42.41% of Total Assets)

NameSymbol% Assets
JPMorgan Chase & CoJPM9.48%
Berkshire Hathaway Inc Class BBRK.B7.61%
Bank of America CorpBAC6.40%
Wells Fargo & CoWFC3.74%
Citigroup IncC2.94%
BlackRock IncBLK2.67%
Goldman Sachs Group IncGS2.62%
Morgan StanleyMS2.59%
American Express CoAXP2.26%
Charles Schwab CorpSCHW2.10%

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