Vanguard Financials ETF

VFH

Market cap $13B

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.

Interest rates are on the decline, U.S.-China trade tensions have heightened and markets have been on a wild ride of late. Against this backdrop, the largest banks of the United States reported earnings.

Interest rates are on the decline, U.S.-China trade tensions have heightened and markets have been on a wild ride of late. Against this backdrop, the largest banks of the United States reported earnings.

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

The first rate cut of the year gives investors the opportunity to position their portfolios to capture future upside in certain sectors, should further cuts occur. History has an uncanny ability to repeat itself, and it's telling us that we should target the financial sector.

Big banks??? earnings surge, resilient deal activity, and favorable valuations put focus on financial ETFs like XLF, VFH, KBWB and IYF.

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

VFH posted strong Q2 results, with robust earnings growth and high beat rates, driving a 10% rally since my initial buy call. Valuation remains attractive at a 16.3x P/E and a modest 1.54x PEG, with a solid 1.73% dividend yield and large-cap value exposure. Technical momentum is healthy, but I note a caution flag due to negative RSI divergence and weak seasonality in August-September.