LIVE
XLF
Financial Select Sector SPDR Fund · ETF / Financials
$53.57
+4.83% this month
VERSUS
⟷
COMPARE
VFH
Vanguard Financials ETF · ETF / Financials
$131.44
+4.90% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
XLF
3
VFH
1
Comparison scoreboard
XLF LEADS 3/5Exp. Ratio
XLF ✓0.08%
VFH 0.09%
1Y Return
XLF +8.32%
VFH ✓+9.60%
Div. Yield
XLF 1.54%
VFH 1.54%
AUM
XLF ✓$49.42B
VFH $13.46B
Beta
XLF ✓0.88
VFH 0.93
Metrics last refreshed: 6/20/2026
Quick take
XLF vs VFH Stock Comparison: AI Score, Valuation, Performance and Upside
XLF and VFH both provide financial sector exposure but at different scales. XLF holds S&P 500 mega-cap financials (Berkshire, JPMorgan, Visa) in a highly liquid, low-cost ETF. VFH holds 400+ financial companies including regional banks that provide different interest rate and credit risk characteristics. The 2023 regional bank failures demonstrated VFH's incremental risk vs XLF. For diversified financial exposure, XLF; for total financial market coverage including regional banks, VFH.
XLF vs VFH — Financial Select Sector SPDR (S&P 500 large-cap financials with Berkshire, JPMorgan, Visa, and Mastercard as top holdings at 0.09%) versus Vanguard Financials ETF (total market financials with 400+ holdings including regional banks and smaller financial companies at 0.10%).
Live analysis · updated 6/20/2026
XLF holds the edge across 3 of 5 key metrics in this comparison. VFH has delivered stronger 1-year price return (+9.60% vs +8.32% for XLF).
Normalized 1Y performance
XLF
VFH
Recent returns
XLF
VFH
Who should consider this stock?
XLF may suit investors who:
- →want large-cap financial exposure with maximum liquidity including Berkshire, JPMorgan, Visa, and Mastercard as core holdings
- →prefer the S&P 500 quality filter excluding smaller regional banks that face higher concentration and commercial real estate risk
- →use financial sector ETFs for interest rate cycle positioning — mega-banks' interest income benefit from rising rates is clear in XLF's top holdings
- →are comfortable with Berkshire's 12% concentration creating insurance/conglomerate exposure within a financial ETF
VFH may suit investors who:
- →want complete US financial market coverage including regional banks, smaller insurers, and specialty finance companies beyond XLF's S&P 500 large-cap scope
- →believe regional banks' interest rate sensitivity provides incremental return potential when rate environment is favorable for community bank lending margins
- →prefer Vanguard's total market methodology for long-term buy-and-hold financial sector positioning
- →are comfortable with 2023-style regional bank stress risk, lower liquidity than XLF, and broader exposure to commercial real estate loan book risk in smaller banks
Performance & AI score
| Metric | XLF | VFH |
|---|---|---|
| ETF score | 61.0 | 54.0 |
| Latest close | $53.57 | $131.44 |
| 1M return | +4.83% | +4.90% |
| 6M return | -1.09% | -0.77% |
| 1Y return | +8.32% | +9.60% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLF | VFH |
|---|---|---|
| 1Y ago | $11K (+10.0%) started 2025-06-18 | $11.13K (+11.3%) started 2025-06-18 |
| 5Y ago | $18.16K (+81.6%) started 2021-06-18 | $18.54K (+85.4%) started 2021-06-18 |
| 10Y ago | $42.44K (+324.4%) started 2016-06-20 | $43.04K (+330.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | XLF | VFH |
|---|---|---|
| Expense ratio | 0.08% | 0.09% |
| Total assets (AUM) | $49.42B | $13.46B |
| Dividend yield | 1.54% | 1.54% |
| Trailing P/E | 16.90 | 16.20 |
| Beta | 0.88 | 0.93 |
| 52-week change | 8.32% | 9.60% |
Risk & fund metrics
| Metric | XLF | VFH |
|---|---|---|
| 1Y return | +8.32% | +9.60% |
| 6M return | -1.09% | -0.77% |
| 1M return | +4.83% | +4.90% |
| 1Y Sharpe ratio | 0.31 | 0.39 |
| Beta | 0.88 | 0.93 |
| Dividend yield | 1.54% | 1.54% |
| 5Y CAGR | +10.66% | +10.78% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
XLF max drawdown14.79%
VFH max drawdown14.75%
XLF max wkly drop4.81%
VFH max wkly drop4.85%
5Y risk snapshot
XLF max drawdown25.81%
VFH max drawdown25.66%
XLF max wkly drop12.19%
VFH max wkly drop12.99%
10Y risk snapshot
XLF max drawdown42.86%
VFH max drawdown44.42%
XLF max wkly drop22.99%
VFH max wkly drop23.46%
Performance metrics by period
| Period | Metric | XLF | VFH |
|---|---|---|---|
| 1Y | Growth | +8.32% | +9.60% |
| CAGR | +8.32% | +9.61% | |
| Sharpe ratio | 0.31 | 0.39 | |
| Max drawdown | 14.79% | 14.75% | |
| Max daily drop | 3.35% | 3.43% | |
| Max wkly drop | 4.81% | 4.85% | |
| 5Y | Growth | +65.90% | +66.82% |
| CAGR | +10.66% | +10.78% | |
| Sharpe ratio | 0.40 | 0.40 | |
| Max drawdown | 25.81% | 25.66% | |
| Max daily drop | 7.32% | 7.15% | |
| Max wkly drop | 12.19% | 12.99% | |
| 10Y | Growth | +247.74% | +242.02% |
| CAGR | +13.28% | +13.09% | |
| Sharpe ratio | 0.47 | 0.46 | |
| Max drawdown | 42.86% | 44.42% | |
| Max daily drop | 13.71% | 13.69% | |
| Max wkly drop | 22.99% | 23.46% |
Fund overview
| Category | XLF | VFH |
|---|---|---|
| Fund name | State Street Financial Select Sector SPDR ETF | Vanguard Financials Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.08% | 0.09% |
| Total assets (AUM) | $49.42B | $13.46B |
| Dividend yield | 1.54% | 1.54% |
XLF strengths
- →Large-cap financial quality filter: XLF's S&P 500 universe ensures only the largest, most systemically important financial institutions and proven financial businesses
- →Berkshire Hathaway as diversified financial anchor: BRK.B's ~12% weight provides insurance + operating business + equity portfolio diversification within XLF's financial sector allocation
- →Visa and Mastercard payment network premium: XLF includes Visa and Mastercard — high-margin, asset-light payment networks that provide growth without traditional bank credit risk
VFH strengths
- →400+ holdings vs XLF's 70: VFH's breadth includes regional banks, smaller insurers, and specialty finance companies not in XLF's S&P 500 scope
- →Regional bank rate sensitivity: smaller regional banks in VFH may benefit more directly from interest rate improvements in lending spreads than large universal banks
- →Complete financial sector representation: VFH aims to capture the full investable US financial market vs XLF's large-cap selection
Risks to watch — XLF
- →Bank earnings interest rate sensitivity: XLF's large bank holdings (JPMorgan, BofA, Wells Fargo) earn more when rates are high (net interest margin) but face loan demand reduction in rate cycles
- →Berkshire concentration creates non-bank characteristics: 12% Berkshire means XLF isn't a pure bank/financial ETF — investors wanting pure bank exposure may prefer KBE or KBWB
- →Credit risk in economic downturns: bank loan portfolios face elevated charge-offs in recessions — financial sector ETFs underperform significantly in credit cycles (2008-2009, 2020)
Risks to watch — VFH
- →Regional bank concentration risk: smaller regional banks in VFH are more exposed to commercial real estate (CRE) loan stress and deposit instability than the mega-banks in XLF
- →2023 regional bank crisis impact: the SVB/Signature Bank/First Republic failures in March 2023 impacted regional banks disproportionately — VFH's regional bank exposure created more volatility than XLF during this period
- →Lower liquidity than XLF: VFH's lower trading volume creates wider bid-ask spreads for tactical positions
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