Fund Evaluator:
Vanguard Financials Index Admiral (VFAIX)
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Best Performing in Financial Over the Last Year
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Fund Details
Vanguard Financials Index Admiral Overview
Vanguard Financials Index Admiral (VFAIX) is a passively managed Sector Equity Financial fund. Vanguard launched the fund in 2004.
The investment seeks to track the performance of the MSCI US Investable Market Index (IMI)/Financials 25/50. The fund employs an indexing investment approach designed to track the performance of the index, an index made up of stocks of large, mid-size, and small U.S. companies within the financials sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified.
About Vanguard Financials Index Admiral (VFAIX)
There are 2 members of the management team with an average tenure of 2.45 years: Kenny Narzikul (2023), Jena Stenger (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: MSCI US Investable Market 2500 NR USD index with a weighting of 100% and MSCI US IMI/Financials 25-50 GR USD index with a weighting of 100%. Vanguard Financials Index Admiral has 441 securities in its portfolio. The top 10 holdings constitute 44.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Financials Index Admiral is part of the Equity global asset class and is within the Sector Equity fund group. Vanguard Financials Index Admiral has 1.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 91.3%. There is 1.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Financials Index Admiral has 3.5% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $197 million average for the Financial category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VFAIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Financials Index Admiral expense ratio is low compared to funds in the Financial category. Vanguard Financials Index Admiral has an expense ratio of 0.09%, which is 93% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Financials Index Admiral has a portfolio turnover rate of 5%, indicating that holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 80% for the Financial category.
Recently, in the month of July 2026, Vanguard Financials Index Admiral returned 5.8%, which earned it a grade of B, as the Financial category had an average return of 4.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Financials Index Admiral has a trailing yield of 1.67%, which is above the 1.01% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Financials Index Admiral Grades
Year to date, the fund has returned 5.3%, 3.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 11.0% over the past year (grade of D), 19.6% over the past three years (grade of C) and 11.4% per year over the past five years (grade of B) and 13.3% per year over the past 10 years (grade of B).
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VFAIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VFAIX Return (NAV) | 5.8% | 9.3% | 11.0% | 19.6% | 11.4% | 13.3% |
| VFAIX Grade | B | C | D | C | B | B |
| +/- Category | 1.7% | 0.3% | -6.7% | 0.3% | 2.1% | 2.0% |
| Financial Avg | 4.1% | 9.0% | 17.7% | 19.3% | 9.3% | 11.3% |
| VFAIX Tax Cost Ratio | na | na | 0.5% | 0.5% | 0.5% | 0.5% |
VFAIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VFAIX Return (NAV) | 5.3% | 14.9% | 30.5% | 14.1% | -12.2% | 35.2% | -2.1% | 31.6% | -13.5% | 20.1% | 24.7% |
| VFAIX Grade | D | B | B | C | B | B | D | B | B | B | B |
| +/- Category | -3.6% | -0.4% | 4.9% | 2.3% | 4.5% | 1.7% | -2.5% | 3.3% | 1.8% | 4.0% | 3.8% |
| Financial Avg | 8.9% | 15.3% | 25.6% | 11.8% | -16.8% | 33.6% | 0.5% | 28.3% | -15.3% | 16.1% | 20.9% |
| Risk Measures | |
| Standard Deviation: | 15.5% |
| Total Risk Index: | 1.26 - Above Average |
| Category Risk Index: | 0.84 - Low |
| Category Risk Grade: | A (19% Rank) |
| Beta: | 0.80 |
| R-Squared: | 43% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | na |
| Yield: | 1.7% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $14824 Mil |
| Fund Total Assets: | $1,190 Mil |
| Share Class Type: | ADM |
| Portfolio Turnover: | 5% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 3.5 years | |||
| Average Tenure: 2.5 years | |||
| Managers (Year): Narzikul Kenny (2023), Stenger Jena (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 441 |
| % in Top 10 Holdings: | 44.0% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 1.6% |
Portfolio Allocation |
|
| Domestic Stock: | 91.3% |
| Foreign Stock: | 1.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 3.7% |
| Cash: | 3.5% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | February 4, 2004 |
| Min. Initial Purchase: | $100,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.09% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 1.33% |
| Share Class: | Vanguard Financials ETF |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
