Dividend comparison
VFH vs XLF: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Financials ETF and State Street Financial Select Sector SPDR ETF, side by side. Updated October 21, 2026.
VFH vs XLF: key differences
The short answer, from the latest data on this page.
- Fees. XLF is cheaper at 0.08% a year versus 0.09% for VFH. On $10,000 that is $1 a year less in fees.
- Income. VFH pays more income, yielding 1.74% over the last twelve months versus 1.48% for XLF. That is about $26 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, XLF returned 50.4% versus 47.7% for VFH, with dividends reinvested. $10,000 would have grown to $15,043 in XLF and $14,771 in VFH.
- Risk. Their worst declines over the last 5 years were similar: -25.7% for VFH and -25.8% for XLF from peak to trough.
- Diversification. VFH holds 404 positions and XLF holds 76. The ten largest positions make up 48.3% of VFH and 57.7% of XLF.
- Overlap. At least 85% of the two portfolios overlap by weight, across 74 shared holdings. Owning both adds little diversification.
- Dividend growth. VFH grew its yearly payout 3.5% a year over the last 4 years, versus 3.1% for XLF.
- Size. XLF is the larger fund with $52.2 billion in assets, against $13.9 billion for VFH.
Bottom line: VFH fits better if you care most about more income today and broader diversification. XLF fits better if you care most about stronger 5-year returns. With 85% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VFH Vanguard Financials ETF | XLF State Street Financial Select Sector SPDR ETF |
|---|---|---|
| Dividend yield (TTM) | 1.74% | 1.48% |
| Dividend / share (TTM) | $2.35 | $0.83 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.4461 on Sep 25, 2026 | $0.1965 on Sep 23, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 21, 2026 |
| Dividend growth (CAGR) | 3.5% over 4 yrs | 3.1% over 4 yrs |
| Price | $135.38 | $55.72 |
| Dividend growth streak | 5 years | 2 years |
| Beta | 0.82 | 0.75 |
| Max drawdown (5Y) | -25.7% | -25.8% |
| Market cap | $13.89B | $51.59B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $13.90B | $52.19B |
| Number of holdings | 404 | 76 |
| Top 10 concentration | 48.3% | 57.7% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VFH
$14.48/mo
$174 /yr at 1.74% yield
XLF
$12.35/mo
$148 /yr at 1.48% yield
Dividend history
Total dividends paid per share in each calendar year. VFH pays quarterly; XLF pays quarterly.
| Year | VFH | XLF |
|---|---|---|
| 2025 | $2.0756 | $0.7197 |
| 2024 | $2.0700 | $0.6869 |
| 2023 | $1.9199 | $0.6415 |
| 2022 | $1.9082 | $0.6990 |
| 2021 | $1.8055 | $0.6360 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $14,771 in VFH and $15,043 in XLF.
| Period | VFH | XLF |
|---|---|---|
| 1 month | -0.69% | 0.11% |
| 3 months | -1.86% | -0.21% |
| Year to date | 1.42% | 2.99% |
| 1 year | 5.40% | 7.24% |
| 3 years | 80.34% | 80.67% |
| 5 years | 47.71% | 50.43% |
- VFH
- XLF
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VFH
- XLF
VFH vs XLF holdings overlap
At least 85% overlap by weight, with 74 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VFH weight | XLF weight |
|---|---|---|
| JPMJPMorgan Chase & Co | 10.42% | 11.42% |
| BRK-BBerkshire Hathaway Inc | 8.32% | 12.77% |
| VVisa Inc | 7.07% | 8.84% |
| MAMastercard Inc | 5.30% | 6.42% |
| BACBank of America Corp | 4.19% | 4.22% |
| GSGoldman Sachs Group Inc/The | 2.94% | 3.28% |
| WFCWells Fargo & Co | 2.87% | 3.19% |
| MSMorgan Stanley | 2.63% | 2.74% |
| CCitigroup Inc | 2.60% | 2.63% |
| AXPAmerican Express Co | 1.91% | 2.15% |
Top 10 holdings
Largest positions by portfolio weight.
VFH404 holdings total
Quick verdict
VFH fits better if you care most about more income today and broader diversification. XLF fits better if you care most about stronger 5-year returns. With 85% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how VFH vs XLF fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VFH or XLF better for dividend income?
It depends on your goals. VFH currently yields 1.74% Trailing Twelve Months (TTM) while XLF yields 1.48%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VFH and XLF?
Vanguard Financials ETF (VFH) is an ETF listed on AMEX. State Street Financial Select Sector SPDR ETF (XLF) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VFH or XLF?
XLF has the lower expense ratio. VFH charges 0.09% a year and XLF charges 0.08%, a difference of $1 a year on a $10,000 investment.
Which has performed better, VFH or XLF?
Over the last 5 years, XLF has the higher total return with dividends reinvested: VFH returned 47.7% and XLF returned 50.4%. Past performance does not predict future returns.
Which is riskier, VFH or XLF?
Measured by the worst peak-to-trough decline over the last five years, XLF has been riskier: VFH fell as much as 25.7% and XLF as much as 25.8%. Their betas are 0.82 and 0.75.
How much do VFH and XLF overlap?
At least 85% of the two portfolios overlap by weight, across 74 shared holdings. The largest shared positions are JPM, BRK-B, V. Holding both adds little diversification.
How often do VFH and XLF pay dividends?
Both pay quarterly. The most recent payments were $0.4461 for VFH and $0.1965 for XLF.
How much income does $10,000 in VFH vs XLF generate?
At current TTM yields, $10,000 in VFH would generate roughly $14.48 per month ($174 annually). The same amount in XLF would produce about $12.35 per month ($148 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VFH and XLF?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VFH vs XLF with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VFH and XLF fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.