VFH vs VOO
Vanguard Financials ETF vs Vanguard S&P 500 ETF
Which is better, VFH or VOO?
Large Cap Value against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 46.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VFH | VOO |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $14.9B | $997.4B |
| Dividend Yield | 1.67% | 1.04% |
| Holdings | 429 | 509 |
| YTD Return | +5.27% | +12.50%Best |
| 1Y Return | +7.49% | +17.58%Best |
| 3Y Return (annualized) | +20.70% | +21.27%Best |
| 5Y Return (annualized) | +10.57% | +12.95%Best |
| Volatility (annualized) | 18.3% | 14.1%Best |
| Max Drawdown | -44.8% | -34.3%Best |
| $10,000 over 5 years | $16,527 | $18,384Best |
| Top 10 Weight | 46.6% | 36.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 11, 2026 (16 years).
VFH vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16 years both funds cover.
VFH vs VOO Performance
Vanguard Financials ETF (VFH) is an ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VFH returned +7.49% while VOO returned +17.58%. Year to date, VFH is up 5.27% versus a gain of 12.50% for VOO.
Over three years, VFH compounded at +20.70% per year against +21.27% for VOO; over five years the annualized figures are +10.57% and +12.95% respectively. Across the full 16-year window we track, VOO has the edge at +13.41% annualized vs +10.92%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -44.8% for VFH and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.67% against 1.04% for VOO.
Holdings Overlap
82.0% of VFH's money is in holdings VOO also owns. 13.3% of VOO's money is in holdings VFH also owns.
Most of VFH is already inside VOO. Owning both mostly buys the same companies twice.
75 positions in common, counted across the 418 positions we hold weights for in VFH and 505 in VOO, against full books of 429 and 509.
What only one of them owns
Our book lists 421 positions for VOO that do not appear in our book for VFH (86.1% of the fund), and 300 for VFH that do not appear in VOO (16.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VFH | Weight in VOO | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co. | 10.45% | 1.26% | 9.19% |
| BRK.BBerkshire Hathaway B | 7.88% | 1.42% | 6.46% |
| MAMastercard Inc | 5.20% | 0.64% | 4.56% |
| BACBank Of America Corp. | 4.66% | 0.58% | 4.08% |
| VVisa Inc | 4.33% | 0.87% | 3.46% |
| GSGoldman Sachs Group Inc. | 3.16% | 0.44% | 2.72% |
| WFCWells Fargo & Co. | 2.93% | 0.39% | 2.54% |
| MSMorgan Stanley | 2.76% | 0.39% | 2.37% |
| CCitigroup Inc. | 2.42% | 0.36% | 2.06% |
| AXPAmerican Express Co. | 1.98% | 0.28% | 1.70% |
82.0% of VFH is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which performed better, VFH or VOO?
Over the past year VFH returned +7.49% vs +17.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VFH annualized +10.92% vs +13.41% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFH or VOO?
VFH has been the more volatile fund at 18.3% annualized versus 14.1% for VOO. Worst drawdown: VFH -44.8% vs VOO -34.3%.
Should I hold both VFH and VOO?
VFH and VOO have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VFH and VOO?
82.0% of VFH's money is in holdings VOO also owns. 13.3% of VOO's is in holdings VFH also owns. They hold 75 positions in common, counted across the 418 positions we hold weights for in VFH and 505 in VOO.
Which pays a higher dividend, VFH or VOO?
VFH yields 1.67% while VOO yields 1.04%, so VFH currently pays the higher dividend yield.
Is VOO better than VFH?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 46.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.