VFH alternatives and similar ETFs

VFH alternatives at a glance#

Each fund below can stand in for VFH, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How VFH and its alternatives did over the same dates#

Each row measures the alternative and VFH on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each VFH alternative, compared#

XLF: State Street Financial Select Sector SPDR ETF#

XLF also holds US banks, insurers and other financial companies. It tracks the Financial Select Sector Index, while VFH tracks the MSCI US Investable Market Index (IMI)/Financials 25/50.

It charges 0.08% a year, about $8 on $10,000, against $9 for VFH. It held 76 stocks, against 423 for VFH.

From January 2004 to October 2026, XLF returned about 5.9% a year and VFH returned about 6.7% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the XLF fund page for its returns by year and worst drop.

IWD: iShares Russell 1000 Value ETF#

IWD is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while VFH holds US banks, insurers and other financial companies.

It charges 0.18% a year, about $18 on $10,000, against $9 for VFH. It held 870 stocks, against 423 for VFH.

From January 2004 to October 2026, IWD returned about 9.1% a year and VFH returned about 6.7% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the IWD fund page for its returns by year and worst drop.

VTV: Vanguard Morningstar Value ETF#

VTV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while VFH holds US banks, insurers and other financial companies.

It charges 0.03% a year, about $3 on $10,000, against $9 for VFH. It held 298 stocks, against 423 for VFH.

From January 2004 to October 2026, VTV returned about 9.7% a year and VFH returned about 6.7% a year. Over about the last five years they moved together on most days (correlation 0.89).

Read the VTV fund page for its returns by year and worst drop.

SPYV: State Street SPDR Portfolio S&P 500 Value ETF#

SPYV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while VFH holds US banks, insurers and other financial companies.

It charges 0.04% a year, about $4 on $10,000, against $9 for VFH. It held 435 stocks, against 423 for VFH.

From January 2004 to October 2026, SPYV returned about 8.9% a year and VFH returned about 6.7% a year. Over about the last five years they moved together on most days (correlation 0.89).

Read the SPYV fund page for its returns by year and worst drop.

IVE: iShares S&P 500 Value ETF#

IVE is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while VFH holds US banks, insurers and other financial companies.

It charges 0.18% a year, about $18 on $10,000, against $9 for VFH. It held 436 stocks, against 423 for VFH.

From January 2004 to October 2026, IVE returned about 8.9% a year and VFH returned about 6.7% a year. Over about the last five years they moved together on most days (correlation 0.89).

Read the IVE fund page for its returns by year and worst drop.

SCHV: Schwab U.S. Large-Cap Value ETF#

SCHV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while VFH holds US banks, insurers and other financial companies.

It charges 0.04% a year, about $4 on $10,000, against $9 for VFH. It held 555 stocks, against 423 for VFH.

From December 2009 to October 2026, SCHV returned about 11.5% a year and VFH returned about 11.9% a year. Over about the last five years they moved together on most days (correlation 0.88).

Read the SCHV fund page for its returns by year and worst drop.

VFH versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to VFH from each other company on this page:

• SPDR (State Street): XLF, State Street Financial Select Sector SPDR ETF (same kind of fund, 0.08% a year)
• iShares (BlackRock): IWD, iShares Russell 1000 Value ETF (related fund, 0.18% a year)
• Schwab: SCHV, Schwab U.S. Large-Cap Value ETF (related fund, 0.04% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between VFH and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, VFH costs about $9 a year. VTV costs about $3.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping VFH to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as XLF, IWD or VTV, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test VFH and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add VFH and XLF, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as VFH. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VFH over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VFH only on days both traded. Read what a backtest simulates for more on these measures.