VFH holds US financial companies of all sizes: banks, insurance companies, asset managers, capital markets firms, consumer finance and payment networks. Large holdings such as JPMorgan Chase, Berkshire Hathaway, Visa and Mastercard make up a significant share. Bank earnings are sensitive to the yield curve, credit quality and regulation, while insurers depend on underwriting results and investment returns. Compared with XLF, VFH includes many small and mid-cap financial companies, including regional banks.
