VFH vs. XLF: Which Financial ETF Is the Better Buy?
VFH holds a significantly greater number of companies and pays a higher dividend yield than XLF, yet both funds have delivered similar five-year returns.
Overview
The State Street Financial Select Sector SPDR ETF (NYSEMKT:XLF) and the Vanguard Financials ETF (NYSEMKT:VFH) both focus on financials, but VFH provides significantly broader diversification.
Investors looking for exposure to the financial sector often choose between these two funds. Both ETFs hold major banks, insurers, and payment networks -- but they differ in portfolio depth and concentration.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.