VFH vs VOO
VFH vs VOO
Vanguard Financials ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VFH | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $12.7B | $979.0B | |
| Dividend Yield | 1.77% | 1.09% | |
| Holdings | 415 | 509 | |
| YTD Return | +6.56% | +13.11% | |
| 1Y Return | +13.50% | +22.88% | |
| 3Y Return (annualized) | +20.26% | +21.08% | |
| 5Y Return (annualized) | +10.91% | +13.26% | |
| Volatility (annualized) | 20.3% | 14.1% | |
| Max Drawdown | -79.9% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
VFH vs VOO Performance
Vanguard Financials ETF (VFH) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VFH returned +13.50% while VOO returned +22.88%. Year to date, VFH is up 6.56% versus a gain of 13.11% for VOO.
Over three years, VFH compounded at +20.26% per year against +21.08% for VOO; over five years the annualized figures are +10.91% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.54% annualized vs +5.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -79.9% for VFH and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VFH charges 0.09% per year while VOO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VFH currently yields 1.77% against 1.09% for VOO.
Holdings Overlap
VFH and VOO share 73 holdings out of 844 unique holdings combined, representing a 11.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VFH | Weight in VOO | Difference |
|---|---|---|---|
| JPM:US | 9.19% | 1.26% | 7.93% |
| BRK.B | 7.46% | 1.42% | 6.04% |
| MA | 4.88% | 0.64% | 4.24% |
| V | Pro | Pro | Pro |
| BAC | Pro | Pro | Pro |
| GS | Pro | Pro | Pro |
| WFC | Pro | Pro | Pro |
| MS | Pro | Pro | Pro |
| C | Pro | Pro | Pro |
| AXP | Pro | Pro | Pro |
See all 10 holdings VFH shares with VOO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, VFH or VOO?
VFH has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VFH or VOO?
Over the past year VFH returned +13.50% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VFH annualized +5.26% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, VFH or VOO?
VFH has been the more volatile fund at 20.3% annualized versus 14.1% for VOO. Worst drawdown: VFH -79.9% vs VOO -34.3%.
Should I hold both VFH and VOO?
VFH and VOO have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VFH and VOO?
VFH and VOO share 73 common holdings with a 11.3% weight overlap. Combined, they hold 844 unique securities.
Which pays a higher dividend, VFH or VOO?
VFH yields 1.77% while VOO yields 1.09%, so VFH currently pays the higher dividend yield.
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