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Vanguard Financials ETF (VFH)

Rating:69Neutral

Price Target:

$139.00

The Vanguard Financials ETF (VFH) has a solid overall rating, reflecting its strong holdings in leading financial companies. Visa and Mastercard stand out as key contributors to the fund's performance due to their robust financial results, strategic growth initiatives, and positive earnings call insights. However, holdings like Wells Fargo and Bank of America face challenges such as cash flow issues and technical weaknesses, which may slightly weigh on the ETF's rating. A potential risk is the fund's concentration in the financial sector, which could make it more sensitive to economic downturns affecting this industry.

Positive Factors

Strong Top Holdings

Several key positions, including JPMorgan Chase and Citigroup, have delivered strong year-to-date performance, boosting the ETF’s returns.

Low Expense Ratio

The ETF charges a very low expense ratio, making it a cost-effective choice for investors.

Large Asset Base

With substantial assets under management, the fund benefits from stability and investor confidence.

Negative Factors

Sector Concentration

The ETF is heavily concentrated in the financial sector, which increases vulnerability to industry-specific risks.

Weak Short-Term Performance

Recent one-month and three-month returns have been negative, indicating short-term struggles.

Limited Geographic Exposure

The fund is almost entirely focused on U.S. companies, offering little diversification across global markets.

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

AUM12.75B

RegionNorth America

Expense Ratio0.09%

Beta0.94

IssuerVanguard

Inception DateJan 26, 2004

Dividend Yield1.62%

Asset ClassEquity

Index TrackedMSCI US IMI 25/50 Financials

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume616,092

30 Day Avg. Volume575,489

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

147.39

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering412

VFH Summary

The Vanguard Financials ETF (VFH) is an investment fund that focuses on the financial sector, including banks, insurance companies, and investment firms. It follows the MSCI US IMI 25/50 Financials index and includes well-known companies like JPMorgan Chase and Berkshire Hathaway. This ETF is a good choice for investors looking to diversify their portfolio and benefit from the potential growth of financial institutions, especially during periods of economic expansion. However, new investors should be aware that the fund’s performance can be affected by changes in interest rates and the overall health of the economy.

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

The Vanguard Financials ETF (VFH) leans heavily into the financial sector, with big names like JPMorgan Chase and Bank of America shaping its trajectory. JPMorgan has been steady but losing a bit of steam recently, while Bank of America is showing signs of resilience with rising momentum. Berkshire Hathaway adds a touch of stability, though its performance has been mixed. Mastercard and Visa, representing the payments space, are facing headwinds, with Mastercard lagging slightly. Overall, the fund’s U.S.-focused portfolio is concentrated in financial heavyweights, making it sensitive to interest rate shifts and economic cycles.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JPM	JPMorgan Chase	10.02%	$1.45B	$840.08B	36.14%	70 Outperform
BRK.B	Berkshire Hathaway B	7.79%	$1.13B	$1.03T	4.57%	69 Neutral
MA	Mastercard	5.57%	$804.21M	$501.35B	7.96%	80 Outperform
BAC	Bank of America	4.22%	$609.56M	$389.46B	24.27%	66 Neutral
V	Visa	4.11%	$594.12M	$657.51B	17.62%	75 Outperform
WFC	Wells Fargo	3.08%	$445.74M	$275.50B	31.48%	66 Neutral
GS	Goldman Sachs Group	2.79%	$403.50M	$237.05B	49.32%	71 Outperform
MS	Morgan Stanley	2.18%	$314.59M	$261.85B	39.10%	74 Outperform
C	Citigroup	2.14%	$308.55M	$182.47B	53.67%	67 Neutral
AXP	American Express	2.13%	$307.41M	$246.76B	30.70%	81 Outperform

VFH Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

130.06

Negative

100DMA

128.21

Negative

200DMA

123.71

Positive

Market Momentum

MACD

-0.61

Positive

RSI

42.56

Neutral

STOCH

40.30

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VFH, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 128.76, equal to the 50-day MA of 130.06, and equal to the 200-day MA of 123.71, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFH.

VFH Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
VFH	―	―	$12.75B	0.09%	69 Neutral
VGT	―	―	$116.40B	0.09%	75 Outperform
XLK	―	―	$94.65B	0.08%	77 Outperform
XLF	―	―	$53.05B	0.08%	72 Outperform
XLV	―	―	$36.87B	0.08%	73 Outperform
VNQ	―	―	$34.81B	0.13%	70 Neutral

Performance Comparison

VFH

Vanguard Financials ETF

127.10

15.74

14.13%

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.

Disclaimer

This 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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