VFH vs XLF
Vanguard Financials Index Fund ETF Shares vs State Street Financial Select Sector SPDR ETF
Last updated: 2026-04-10
Vanguard Financials Index Fund ETF Shares (VFH) is an exchange-traded fund issued by Vanguard that provides exposure to us sector - financials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.56%. Launched in 2004, the fund has a 22-year track record.
State Street Financial Select Sector SPDR ETF (XLF) is an exchange-traded fund issued by SPDR that provides exposure to us sector - financials securities. It charges a low expense ratio of 0.08%. The fund offers a moderate dividend yield of 1.56%. Launched in 1998, the fund has a 28-year track record.
Quick Verdict
Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. VFH has edged ahead over the past year (13.5% vs 10.4%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
8 of top 8 holdings overlap (100% overlap in top holdings)
VFH Top Holdings
| Name | Weight |
|---|---|
| JPMorgan Chase & Co.JPM | 8.96% |
| Berkshire Hathaway Inc.BRK.B | 8.12% |
| Mastercard IncorporatedMA | 5.12% |
| Visa Inc.V | 4.06% |
| Bank of America CorporationBAC | 3.80% |
| Wells Fargo & CompanyWFC | 2.99% |
| The Goldman Sachs Group, Inc.GS | 2.87% |
| Morgan StanleyMS | 2.31% |
XLF Top Holdings
| Name | Weight |
|---|---|
| Berkshire Hathaway Inc.BRK.B | 12.15% |
| JPMorgan Chase & Co.JPM | 11.42% |
| Visa Inc.V | 7.08% |
| Mastercard IncorporatedMA | 5.60% |
| Bank of America CorporationBAC | 4.77% |
| The Goldman Sachs Group, Inc.GS | 3.70% |
| Wells Fargo & CompanyWFC | 3.63% |
| Citigroup Inc.C | 2.98% |
| Morgan StanleyMS | 2.93% |
| American Express CompanyAXP | 2.32% |
Which One Should You Choose?
Choose VFH if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Either works if...
you just need broad us sector - financials exposure. Both are solid options — pick whichever your brokerage offers commission-free.