# VFH alternatives: 6 similar ETFs compared

> ETFs similar to VFH, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as VFH. Updated daily.

The ETFs most like VFH are XLF, IWD and VTV. XLF holds US banks, insurers and other financial companies, like VFH. XLF costs less: 0.08% a year against 0.09%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 6 funds can stand in for VFH: 1 of the same kind and 5 related funds.
- VFH charges 0.09% a year (about $9 on $10,000). The cheapest alternative here, VTV, charges 0.03%.
- XLF moved most like VFH: a daily correlation of 0.99 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## 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.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **VFH** | This fund | 0.09% | $9 | MSCI US Investable Market Index (IMI)/Financials 25/50 |
| [XLF](https://tactfolio.com/etf/xlf.md) | Same kind of fund | 0.08% | $8 | Financial Select Sector Index |
| [IWD](https://tactfolio.com/etf/iwd.md) | Related fund | 0.18% | $18 | Russell 1000 Value Index |
| [VTV](https://tactfolio.com/etf/vtv.md) | Related fund | 0.03% | $3 | Morningstar US Large Cap Value Index |
| [SPYV](https://tactfolio.com/etf/spyv.md) | Related fund | 0.04% | $4 | S&P 500 Value Index |
| [IVE](https://tactfolio.com/etf/ive.md) | Related fund | 0.18% | $18 | S&P 500 Value Index |
| [SCHV](https://tactfolio.com/etf/schv.md) | Related fund | 0.04% | $4 | Dow Jones U.S. Large-Cap Value Total Stock Market Index |

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.

| ETF | Moves with VFH | Per year | VFH per year | Worst drop | VFH worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [XLF](https://tactfolio.com/etf/xlf.md) | 0.99 | 5.9% | 6.7% | −82.7% | −78.6% | January 2004 |
| [IWD](https://tactfolio.com/etf/iwd.md) | 0.90 | 9.1% | 6.7% | −60.1% | −78.6% | January 2004 |
| [VTV](https://tactfolio.com/etf/vtv.md) | 0.89 | 9.7% | 6.7% | −59.3% | −78.6% | January 2004 |
| [SPYV](https://tactfolio.com/etf/spyv.md) | 0.89 | 8.9% | 6.7% | −58.5% | −78.6% | January 2004 |
| [IVE](https://tactfolio.com/etf/ive.md) | 0.89 | 8.9% | 6.7% | −61.3% | −78.6% | January 2004 |
| [SCHV](https://tactfolio.com/etf/schv.md) | 0.88 | 11.5% | 11.9% | −37.1% | −44.4% | December 2009 |

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](https://tactfolio.com/etf/xlf.md) 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](https://tactfolio.com/etf/iwd.md) 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](https://tactfolio.com/etf/vtv.md) 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](https://tactfolio.com/etf/spyv.md) 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](https://tactfolio.com/etf/ive.md) 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](https://tactfolio.com/etf/schv.md) 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](https://tactfolio.com/etf/xlf.md), State Street Financial Select Sector SPDR ETF (same kind of fund, 0.08% a year)
- **iShares (BlackRock):** [IWD](https://tactfolio.com/etf/iwd.md), iShares Russell 1000 Value ETF (related fund, 0.18% a year)
- **Schwab:** [SCHV](https://tactfolio.com/etf/schv.md), 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](https://www.irs.gov/publications/p550).

## 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](https://tactfolio.com/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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to VFH?

XLF is the closest. 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. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to VFH?

Yes. VTV charges 0.03% a year, SPYV charges 0.04% a year and SCHV charges 0.04% a year, against 0.09% for VFH. On $10,000 that is about $3 a year instead of $9.

### Is VFH or XLF better?

Neither is better for everyone. From January 2004 to October 2026, VFH returned about 6.7% a year and XLF returned about 5.9% a year. VFH charges 0.09% a year and XLF charges 0.08%. Past returns do not tell you what comes next.

### What if I had put $10,000 in VFH 10 years ago?

It would have grown to about $33,409 by October 16, 2026, with dividends reinvested. That is about 12.8% a year. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Financials ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vfh)
- [SPDR (State Street): State Street Financial Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-financial-select-sector-spdr-etf-xlf)
- [iShares (BlackRock): iShares Russell 1000 Value ETF fund page](https://www.ishares.com/us/products/239708/ishares-russell-1000-value-etf)
- [Vanguard: Vanguard Morningstar Value ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtv)
- [SPDR (State Street): State Street SPDR Portfolio S&P 500 Value ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-portfolio-sp-500-value-etf-spyv)
- [iShares (BlackRock): iShares S&P 500 Value ETF fund page](https://www.ishares.com/us/products/239728/ishares-s-p-500-value-etf)
- [Schwab: Schwab U.S. Large-Cap Value ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020698/tm266454-4_497k.htm)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.