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VFH - ETF AI Analysis

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VFH

Vanguard Financials ETF (VFH)

Rating:67Neutral
Price Target:
VFH, the Vanguard Financials ETF, earns a solid overall rating thanks to its heavy exposure to strong, well-established financial leaders like JPMorgan Chase and Wells Fargo, which show robust profitability, positive earnings sentiment, and generally supportive technical trends. Additional strength comes from holdings such as American Express and Morgan Stanley, where strong growth, strategic innovation, and positive outlooks further bolster the fund’s quality. The main risk is that the ETF is concentrated in the financial sector, so challenges like high leverage, cash flow issues, or sector-wide downturns could weigh on performance.
Positive Factors
Strong Recent Performance
The ETF has shown steady gains over the past month and quarter, suggesting positive momentum in the financial sector.
Leading Financial Institutions in Top Holdings
Several major bank and financial stocks in the top holdings have delivered strong year-to-date results, helping support the fund’s overall performance.
Low Expense Ratio
The fund’s very low annual fee means more of the investment returns stay in investors’ pockets compared with higher-cost ETFs.
Negative Factors
Heavy Concentration in Financials
Nearly all of the ETF’s assets are in the financial sector, so the fund is highly sensitive to downturns in banks and other financial companies.
Mixed Performance Among Top Holdings
Some of the largest positions have shown weak or negative year-to-date performance, which can drag on the ETF’s overall returns.
Limited Geographic Diversification
With the vast majority of its holdings in U.S. companies, the fund offers little exposure to financial firms in other regions.

VFH vs. SPDR S&P 500 ETF (SPY)

VFH Summary

Vanguard Financials ETF (VFH) is a fund that tracks the MSCI US IMI 25/50 Financials Index, giving you broad exposure to U.S. financial companies like JPMorgan Chase and Berkshire Hathaway. It holds a mix of banks, credit card companies, insurers, and other financial firms, so you’re not betting on just one stock. Someone might invest in VFH to add diversification and potential long-term growth from the financial sector to their portfolio. A key risk is that it is heavily tied to financial stocks, so its value can rise or fall sharply with changes in the economy and interest rates.
How much will it cost me?The Vanguard Financials ETF (VFH) has an expense ratio of 0.09%, meaning you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs low for investors.
What would affect this ETF?The Vanguard Financials ETF (VFH) could benefit from rising interest rates, as they often increase profitability for banks and financial institutions, which make up the majority of its holdings. Additionally, economic growth and technological advancements in financial services could drive sector expansion. However, potential risks include economic downturns, stricter regulations on financial institutions, or instability in the U.S. market, which is the ETF's primary geographic focus.

VFH Top 10 Holdings

Vanguard Financials ETF is very much a U.S. banking and Wall Street story, with big lenders and investment banks steering the ship. JPMorgan and Bank of America have been rising, giving the fund a solid backbone, while Goldman Sachs, Morgan Stanley, and Citigroup are also powering ahead and adding extra lift. On the flip side, payment giants like Mastercard and Visa have been losing a bit of steam, and Berkshire Hathaway has been more steady than exciting. Overall, this is a concentrated bet on American financial muscle rather than a global mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
JPMorgan Chase9.18%$1.33B$933.03B17.99%
72
Outperform
Berkshire Hathaway B7.84%$1.13B$1.05T2.13%
66
Neutral
Mastercard4.74%$685.02M$470.05B-5.89%
75
Outperform
Bank of America4.36%$630.04M$437.29B26.64%
72
Outperform
Visa4.10%$592.95M$665.89B-0.67%
70
Outperform
Goldman Sachs Group3.19%$460.94M$323.98B49.44%
73
Outperform
Wells Fargo2.85%$412.48M$264.46B2.77%
80
Outperform
Morgan Stanley2.79%$403.49M$344.64B51.00%
76
Outperform
Citigroup2.54%$366.98M$226.80B38.25%
68
Neutral
American Express2.03%$292.83M$237.95B10.57%
80
Outperform

VFH Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
130.99
Positive
100DMA
127.13
Positive
200DMA
127.92
Positive
Market Momentum
MACD
1.89
Positive
RSI
63.06
Neutral
STOCH
39.44
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VFH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 136.18, equal to the 50-day MA of 130.99, and equal to the 200-day MA of 127.92, indicating a bullish trend. The MACD of 1.89 indicates Positive momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VFH.

VFH Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$13.37B0.09%
67
Neutral
$142.14B0.09%
74
Outperform
$118.06B0.08%
75
Outperform
$55.94B0.08%
72
Outperform
$41.93B0.08%
73
Outperform
$39.49B0.13%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFH
Vanguard Financials ETF
137.81
10.56
8.30%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
XLV
Health Care Select Sector SPDR Fund
VNQ
Vanguard Real Estate ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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