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Vanguard Financials ETF versus ProShares Ultra Financials for financial exposure
VFH tracks a broad financial index with holdings in 427 stocks, while UYG uses leverage to target double the benchmark's daily return and carries a higher-volatility profile.
A comparison of two financial-sector ETFs, Vanguard Financials ETF (VFH) and ProShares Ultra Financials (UYG), highlights the tradeoff between long-term index stability and leveraged, short-term oriented returns. According to Yahoo Finance, VFH is designed to track a market-cap weighted index of financial firms, while UYG seeks double the daily return of its benchmark, which can increase risk over time.
The analysis notes that VFH holds 427 stocks covering segments across financial services, including insurance, asset management, and investment banking. Its largest positions include JPMorgan Chase & Co at 9.2%, Berkshire Hathaway Inc at 7.8%, and Mastercard Inc at 4.7%, and the fund has been launched in 2004.
On the payout side, Yahoo Finance reports that VFH paid $2.32 per share over the trailing 12 months, which works out to a 1.70% yield based on a recent share price of about $136.6. By contrast, UYG holds 84 positions with a 98% sector tilt toward financial services and aims for amplified exposure, with an emphasized caution that leverage can introduce decay risk over longer periods.
Yahoo Finance also says UYG does not simply mirror VFH's income profile, because its dividend yield excludes a short-term capital gains payout to shareholders, and capital gains distributions can lead it to return more cash than investors might expect based solely on yield. It lists top holdings for UYG including Berkshire Hathaway at 7.8%, JPMorgan Chase & Co at 7.2%, and ProShares Genius Mny Mkt Etf at 5.02%.