VFH offers comprehensive coverage of the U.S. financials sector, which mitigates company-specific risk. It also is tied for having the lowest expense ratio of any major financial-services ETF.
Despite net-interest-margin pressure in the short term, over the longer term, higher interest rates should help U.S. banks.
Banks are in general better capitalized than in the past, and capital ratios have been improving. Banks also have done a fine job cutting expenses. Read more