Vanguard Financials ETF

VFH

Market cap $12.9B

The sell-off in growth stocks is weighing heavily on major indexes, and even more so on growth-focused ETFs. However, the long-term potential rewards far outweigh the risks of investing in top-growth stocks.

Market volatility from Iran tensions has created dip-buying chances. Here are 5 ETFs across tech, semis, dividends, healthcare and financials.

A report by an independent research firm on the potential effects of AI spooked the financial sector. American Express, Mastercard, and Visa all contributed heavily to the sector-wide sell-off.

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.

IAT: Undervalued Regional Banks With Strong Growth Momentum

Growing weariness around the AI trade and escalating AI-related disruption fears are weighing on vulnerable companies and sectors, as highlighted by the recent sell-off in U.S. software and data services stocks. At the same time, Wall Street's scrutiny of Big Tech's AI spending has intensified, with investors reacting negatively to signals of further capital expenditure expansion.

The Big 4 banks—JPM, WFC, C, BAC—signal a transition to a stable, post-rate-shock environment with resilient consumer credit and moderate loan growth. Banks expect net interest income to plateau, but manageable costs and operating leverage—driven by AI and efficiency—support bottom-line growth.

The Vanguard Financials ETF and the iShares U.S. Financials ETF share very similar portfolios. The iShares fund has an expense ratio of 0.38%, but Vanguard's charges just 0.09%.

Financial-sector ETFs rebounded as gains in major Wall Street banks and dealmakers helped blunt the lingering policy noise, underlining the sector's resilience after a volatile start to the week.

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