Vanguard ETFs VFH, FNCL and VIG Compared on Costs, Yields, Holdings

The Vanguard Financials ETF (VFH) and Fidelity MSCI Financials Index ETF (FNCL) track nearly identical portfolios of U.S. banks, insurers and capital‑market firms. VFH is larger, with $13.9 billion in assets, a 0.09 % expense ratio and a 1.7 % trailing dividend yield, while FNCL holds $2.2 billion, charges 0.08 % and yields 1.6 %. Both funds allocate about 97 % to financial services and list JPMorgan Chase, Berkshire Hathaway and major payment processors among their top holdings.

The Vanguard Dividend Appreciation ETF (VIG) focuses on high‑quality dividend‑paying companies. It trades at a forward P/E of roughly 21, carries a low 0.04 % expense ratio and offers a 1.51 % yield, which trails comparable funds such as SCHD. Recent dividend‑growth rates have slowed to 1.75 % year‑to‑date, raising concerns about future income potential.

Overall, VFH provides a larger, slightly higher‑yielding exposure to the financial sector, FNCL offers a lower‑cost alternative with similar composition, and VIG delivers broader dividend‑focused exposure but with slower growth and a modest yield advantage.