Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBrendan Coffey, The Motley FoolSun, July 26, 2026 at 7:51 PM GMT+2 5 min readChoosing between Vanguard Financials ETF (NYSEMKT:VFH) and ProShares - Ultra Financials (NYSEMKT:UYG) involves weighing the benefits of a low-cost, broad-market index fund against a highly volatile leveraged tool designed for short-term traders.The financial sector encompasses everything from global banking giants to regional lenders and payment processors. Investors looking for exposure here could choose VFH for market-tracking stability or UYG for amplified daily returns. While VFH tracks a market-cap weighted index for long-term growth, the ProShares fund seeks double the daily return of its benchmark, which introduces risks from leverage decay over longer periods.Snapshot (cost & size)MetricUYGVFHIssuerProSharesVanguardShare price$92.17 (as of 2026-07-23)$136.59 (as of 2026-07-23)Expense ratio0.94%0.09%1-yr return (as of July 23, 2026)(5.30%)7.30%Dividend yield0.88%1.70%Beta1.740.89AUM$797.2 million$13.9 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23. Dividend yield for UYG excludes a short-term capital-gains payout to shareholders.VFH is the more affordable option, while its counterpart charges a significantly higher fee for its leveraged strategy. The Vanguard fund offers a higher payout, though the ProShares fund actually returned more cash due to capital gains distributions, despite its different objectivePerformance & risk comparisonMetricUYGVFHMax drawdown (5 yr)(49.60%)(25.70%)Growth of $1,000 over 5 years (total return)$1,473.0$1,696.0What's insideVanguard Financials ETF holds 427 stocks and mirrors the performance of firms across the financial sector, including insurance, asset management, and investment banking. Its largest positions include JPMorgan Chase & Co (NYSE:JPM) at 9.2%, Berkshire Hathaway Inc (NYSE:BRKB) at 7.8%, and Mastercard Inc (NYSE:MA) at 4.7%. This passive approach provides wide diversification. It was launched in 2004. The Vanguard fund has paid $2.32 per share over the trailing 12 months, which on its recent ~$136.6 share price works out to a 1.70% yield.The ProShares - Ultra Financials holds 84 positions and focuses on providing amplified exposure to financial services, with a 98% sector tilt toward that industry. Top holdings include Berkshire Hathaway at 7.8%, JPMorgan Chase & Co at 7.2%, and Proshares Genius Mny Mkt Etf (NYSEMKT:IQMM) at 5.02%, which is essentially a cash position for the fund. Because it resets leverage daily, it is generally considered a tactical tool rather than a core long-term holding. It was launched in 2007. ProShares Ultra Financials has paid $0.88 per share over the trailing 12 months, plus a short-term gains distribution of $9.83, which gets taxed as ordinary income to the shareholder. Counting that capital gain with dividend income, the yield is more than 11% on the ETF.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info