Vanguard's Financials Index Fund ETF leads Vanguard ETFs in 2024 with a 33.6% return, thriving in a robust economy.

The Vanguard Financials Index Fund ETF (VFH) has been the top-performing Vanguard ETF in 2024, with a 33.6% year-to-date return. This success is attributed to the cyclical nature of financial stocks, which thrive in a growing economy and under favorable interest rates. Despite the strong performance, the ETF remains relatively undervalued, trading at a lower price-to-earnings ratio compared to the broader market. Economic conditions and policy expectations under the Trump administration suggest continued strong performance for financial stocks in the coming year.

November 24, 2024
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