Why is VFH better than PSCF?

VFH may be considered better than PSCF for some investors due to its specific focus, offering diversification.

PSCF's performance relative to VFH will vary over time, depending on market conditions.

Should I invest in VFH or PSCF?

The choice between VFH and PSCF should align with your investment goals, risk tolerance, and desired exposure.

Are VFH and PSCF good investments?

Both VFH and PSCF can be suitable investments depending on individual investment strategies, goals, and risk profiles.

What is the correlation between VFH and PSCF?

The correlation between VFH and PSCF can vary over time, reflecting differences in performance.

4 min read

By Beqa Bumbeishvili, ETF Insider

VFH VS PSCF

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, allowing individuals to access diversified exposure across a wide range of sectors and asset classes. In this article, we will undertake an in-depth comparison between two prominent ETFs: VFH (Vanguard Financials ETF) and PSCF (Invesco S&P SmallCap Financials ETF). We'll delve into crucial aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure.

VFH Vs PSCF: Overview

VFH and PSCF represent two distinct strategies within the financial sector. While VFH focuses on providing broad exposure to the financial industry as a whole, PSCF narrows its scope to small-cap financial companies. This difference in focus translates to varying risk and potential returns, which we'll explore in the subsequent sections.

VFH Vs PSCF: Sectors and Top Holdings

The VFH ETF encompasses a broad range of financial subsectors, including banking, insurance, real estate, and more. Its top holdings include familiar names like JPMorgan Chase, Berkshire Hathaway, and Bank of America. In contrast, PSCF concentrates on small-cap financial firms such as Fulton Financial, Meta Financial Group, and SLM Corporation. Analyzing the sectors and top holdings empowers investors to make informed decisions based on their investment objectives.

VFH overlap VFH VS PSCF

VFH Vs PSCF: Capitalization and Investment Strategy

VFH boasts a substantial asset under management (AUM), signifying its popularity among investors seeking exposure to the financial sector's stability. On the other hand, PSCF's investment strategy revolves around capturing the performance of small-cap financial stocks. The disparity in capitalization and investment strategy influences the potential risks and returns associated with these two ETFs, making thorough research essential for investors.

VFH Vs PSCF: Tracking Methods and Exposure

VFH's objective is to mirror the performance of the MSCI US Investable Market Financials 25/50 Index, a broad representation of large-cap financial companies. PSCF, in contrast, tracks the performance of the S&P SmallCap 600 Capped Financials Index, which includes small-cap financial firms. By understanding the distinct tracking methods and exposures, investors can align their investment choices with their financial goals.

Conclusion

VFH and PSCF stand as distinct opportunities within the financial sector. Whether you're drawn to the broad reach of VFH or the targeted focus of PSCF, each ETF presents its unique set of advantages and considerations. For investors seeking to delve deeper into the nuances of these ETFs, explore ETF Insider—an intuitive app that offers insights into holdings, correlations, overlaps, and other critical information. With its user-friendly interface, ETF Insider serves as an invaluable resource for navigating the complexities of financial instruments.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

https://finance.yahoo.com/PSCF ETF issuer
https://finance.yahoo.com/quote/PSCF/ PSCF ETF official page

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FAQ

Why is VFH better than PSCF?
VFH may be considered better than PSCF for some investors due to its specific focus, offering diversification.
Does PSCF beat VFH?
PSCF's performance relative to VFH will vary over time, depending on market conditions.
Should I invest in VFH or PSCF?
The choice between VFH and PSCF should align with your investment goals, risk tolerance, and desired exposure.
Are VFH and PSCF good investments?
Both VFH and PSCF can be suitable investments depending on individual investment strategies, goals, and risk profiles.
What is the correlation between VFH and PSCF?
The correlation between VFH and PSCF can vary over time, reflecting differences in performance.