Vanguard Financials ETF

VFH

Market cap $13.3B

Q4 revenue growth looks strong across construction, tech, aerospace, finance & utilities. Play the trend via PAVE, XLK, ITA, VFH & XLU.

Solid Q4 earnings trends put sector ETFs in focus as growth broadens beyond Tech. ETFs ITA, XLK, VFH stand out.

Big banks will start releasing their quarterly numbers this week. Let's delve into the earnings potential of the big six banking companies, which could drive the performance of the sector ahead.

Designed to provide broad exposure to the Financials - Broad segment of the equity market, the Vanguard Financials ETF (VFH) is a passively managed exchange traded fund launched on January 26, 2004.

After finishing 2024 with the third-best performance of the S&P 500's 100 sectors, the financial sector is wrapping up 2025 with strong momentum that could carry into 2026.

Softer inflation and dovish signals point to more 2026 rate cuts. These ETFs can help investors ride potential gains.

Vanguard Financials ETF (VFH) offers broad exposure to the financial sector, outperforming XLF and FNCL due to its diversified holdings and superior liquidity. Financials are poised for a rebound as the yield curve normalizes, credit quality remains stable, and sector valuations look attractive relative to the S&P 500. Potential deregulation under a pro-business administration could provide an additional tailwind for VFH and the broader financial sector.

Many financial companies are slow-growing and balance sheet intensive, making them more common in value funds and usually less appealing to growth strategies. However, there are asset-light firms that have competitive advantages and that are benefiting from secular trends.

This sector ETF has delivered solid though not spectacular performance this year. It could be a nice complement to portfolios that are heavily allocated to growth sectors.

Consumers are feeling the pinch. Hence, one can bet on high-growth sectors.