VFH - ETF AI Analysis

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Vanguard Financials ETF (VFH)

Rating:69Neutral

Price Target:―

VFH, the Vanguard Financials ETF, has a solid overall rating driven mainly by large, well-established financial leaders like JPMorgan Chase, Wells Fargo, and American Express, which show strong earnings, positive outlooks from recent calls, and generally supportive technical trends. Payment giants like Mastercard and Visa also add strength through robust growth and innovation, though their higher valuations and some bearish technical signals, along with leverage and cash flow concerns at several banks, introduce risk. The main risk factor is the ETF’s concentration in the financial sector, meaning it is heavily exposed to economic and credit-cycle conditions affecting banks and financial services companies.

Positive Factors

Low Expense Ratio

The fund charges relatively low fees, which helps investors keep more of their returns over time.

Large, Established Financial Holdings

The ETF’s biggest positions are in well-known, major financial companies, which can provide stability compared with smaller, less established firms.

Significant Fund Size

With a large amount of assets under management, the ETF is likely to be more liquid and easier to trade for most investors.

Negative Factors

Sector Concentration in Financials

The fund is heavily focused on the financial sector, so it may be hit hard if banks and other financial companies struggle.

Weak Recent Performance

The ETF has shown negative returns so far this year and over the past month, signaling recent performance has been soft.

Top Holdings Under Pressure

Several of the largest positions have been lagging this year, which can drag on the overall fund’s results.

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

AUM12.95B

RegionNorth America

Expense Ratio0.09%

Beta0.92

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. Volume575,179

30 Day Avg. Volume615,728

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

147.93

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering418

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

VFH Summary

Vanguard Financials ETF (VFH) is a fund that tracks the MSCI US IMI 25/50 Financials Index, focusing on U.S. financial companies like banks, insurers, and payment firms. It holds well-known names such as JPMorgan Chase and Berkshire Hathaway, along with card giants like Visa and Mastercard. Someone might invest in VFH to get broad, low-cost exposure to the financial sector in a single investment, aiming for long-term growth and income from many companies at once. A key risk is that it is heavily tied to financial stocks, which can rise or fall sharply with interest rates and the overall 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

VFH is a pure U.S. financials play, and the big banks are steering the ship. JPMorgan and Bank of America have been relatively steady, helping to anchor the fund even as they’ve lost a bit of steam this year. Goldman Sachs, Morgan Stanley, and Citigroup have shown more recently rising momentum, giving the ETF a lift on the investment banking and trading side. On the flip side, card and payments giants like Visa, Mastercard, and American Express are lagging, so the fund’s payments engine is sputtering even as traditional banking powers the portfolio forward.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JPM	JPMorgan Chase	9.05%	$1.36B	$832.79B	17.62%	72 Outperform
BRK.B	Berkshire Hathaway B	7.41%	$1.12B	$1.08T	4.06%	66 Neutral
MA	Mastercard	5.14%	$773.31M	$470.86B	-5.58%	75 Outperform
BAC	Bank of America	4.08%	$613.87M	$384.86B	18.41%	72 Outperform
V	Visa	3.96%	$595.45M	$610.49B	-7.91%	70 Outperform
WFC	Wells Fargo	3.24%	$488.09M	$273.88B	14.45%	80 Outperform
GS	Goldman Sachs Group	3.07%	$461.93M	$280.05B	47.42%	73 Outperform
MS	Morgan Stanley	2.45%	$368.51M	$280.66B	33.20%	76 Outperform
C	Citigroup	2.30%	$346.89M	$208.04B	45.64%	68 Neutral
AXP	American Express	2.19%	$330.11M	$237.73B	17.19%	80 Outperform

VFH Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

132.42

Negative

100DMA

130.21

Negative

200DMA

127.98

Positive

Market Momentum

MACD

-1.16

Positive

RSI

43.56

Neutral

STOCH

35.81

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 130.16, equal to the 50-day MA of 132.42, and equal to the 200-day MA of 127.98, indicating a neutral trend. The MACD of -1.16 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 35.81 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	―	―	$12.95B	0.09%	69 Neutral
VGT	―	―	$110.83B	0.09%	74 Outperform
XLK	―	―	$88.42B	0.08%	76 Outperform
XLF	―	―	$51.94B	0.08%	72 Outperform
XLV	―	―	$41.69B	0.08%	73 Outperform
XLE	―	―	$37.79B	0.08%	74 Outperform

Performance Comparison

VFH

Vanguard Financials ETF

128.59

7.09

5.84%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

XLE

Energy Select Sector SPDR Fund

―

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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