What is the primary difference between VFH and VOO?

VFH is a Vanguard Financials ETF that focuses on stocks within the financial services sector, including banks, insurance, and payments companies. In contrast, VOO is a Vanguard S&P 500 ETF designed to track a broad segment of the US economy across multiple sectors. They provide different kinds of market exposure.

Do VFH and VOO track any of the same benchmarks?

They do not track the same index benchmarks because VFH specifically targets the financial sector while VOO targets large-cap U.S. equities as a whole.

What do the expense ratios of VFH and VOO tell us about their costs?

The expense ratio represents the annual cost to manage an ETF as a percentage of assets. VFH has a 0.09% expense ratio, which is higher than VOO's 0.03%. While the difference is just 0.06 percentage points, lower costs like VOO's are often cited as advantageous for broad market tracking.

How do VFH and VOO compare regarding dividend yield?

Dividend yield is the annual payout from an investment compared to its share price. The financial sector companies in VFH have a 1.70% yield, offering more income, while VOO has a 1.03% yield, reflecting a more blended rate typical of broad market indices.

How do the top holdings of VFH and VOO differ?

Their top holdings are entirely distinct. VFH's ten largest positions, like JPM and BRK.B, are all major financial institutions. VOO's largest holdings, including NVDA and AAPL, are tech giants. Their focus drives completely different sets of companies in their portfolios.

Are the top holdings of these two ETFs the same?

Based on the fund data, there are no overlapping companies in the top ten holdings of both ETFs. This indicates the funds are built from distinct sets of stocks tailored to their specific market strategies.

What is the concentration risk associated with VFH?

Financials ETFs often carry significant concentration risk because the top 10 holdings represent a large share of the total fund. This is a common characteristic of sector funds and is noted as a potential disadvantage for VFH.

How does the size and history of VFH compare to VOO?

Both funds are from Vanguard, but VOO has significantly more assets at $1.08 trillion compared to VFH's $13.1 billion. While VOO is a newer fund established in 2010, VFH has a longer track record dating back to 2004.

Which investing goals are associated with VFH?

VFH is often associated with investors seeking a strategic allocation to the financials sector or those looking for a fund with a higher dividend yield. The 1.70% yield positions it as a more income-focused option compared to a broad market index fund.

Which investing goals are typically associated with VOO?

VOO is generally considered a core holding for investors seeking diversified exposure to the large-cap U.S. stock market. Its very low cost of 0.03% and broad sector makeup make it a typical choice for building a foundational, long-term investment.

Do the sector weightings for these funds match?

The fund data indicates that sector weightings are currently 'not available' for both VFH and VOO. Without this information, direct comparison is not possible.

What is the main difference in investment scope between these two Vanguard funds?

The main difference is scope: VFH focuses narrowly on the financials sector, while VOO covers a broad range of large-cap U.S. equities.

VFH vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Vanguard Financials ETF (VFH) and S&P 500 Vanguard ETF (VOO). This page examines fees, holdings, dividends and how each fund tracks its market. VFH focuses on financial sector stocks while VOO targets large-cap US equities. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VFH

Metric

VOO

0.09%

Expense Ratio

0.03%

1.70%

Dividend Yield

1.03%

$13.08B

Net Assets

$1.08T

434

Holdings

516

Jan 26, 2004

Inception Date

Sep 7, 2010

–

Index Tracked

–

Financial

Fund Category

Large Blend

VOO costs about $6.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VFH

Pros

The fund tracks the financials sector with a competitive expense ratio of 0.09%.
It provides substantial exposure to major financial institutions and payments companies.
The dividend yield of 1.70% offers income potential for investors.

Considerations

Its net assets of $13.1 billion are much smaller than Vanguard's core index funds.
The lack of publicly available index tracking details creates uncertainty regarding its methodology.
The top 10 holdings represent a large percentage of the fund, leading to significant concentration risk.

VOO

Pros

It offers low-cost exposure to the broad large-cap US market with a 0.03% expense ratio.
The fund has accumulated significant assets, reaching a total of $1.08 trillion.
Being a well-established, large blend index fund, it has a long track record and high liquidity.

Considerations

Its dividend yield of 1.03% is relatively modest compared to income-focused sector funds.
The top 10 holdings are heavily concentrated in the technology and consumer services sectors.
Specific details regarding the fund's index tracking methodology are not available.

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About VFH and VOO

VFH (VFH)

The Vanguard Financials ETF (VFH) offers investors exposure to the US financial sector. It tracks an index comprising stocks from banks, insurance companies, and asset managers. With a low expense ratio of 0.09% and substantial net assets of USD 13.08 billion, it is a cost-efficient way to diversify within this specific industry. The fund holds 434 distinct companies, providing broad coverage across financial services. Its dividend yield sits at 1.70%, offering some income potential alongside capital growth opportunities. Launched in January 2004, VFH has a long history of providing sector-specific access. However, like all investments, its value can fluctuate, and returns are not guaranteed. The financial sector can be sensitive to interest rate changes and economic conditions, making it suitable for those seeking targeted exposure who understand the cyclical nature of these industries. Always consider your overall investment strategy before engaging with sector-specific funds.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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VFH vs VOO

Fund Snapshot