BHCHX vs. VGHCX

Last updated Jun 4, 2026

BHCHX (Baron Health Care Fund) and VGHCX (Vanguard Health Care Fund Investor Shares) are both Health & Biotech Equities funds. Over the past 5 years, BHCHX returned 0.06%/yr vs 7.16%/yr for VGHCX. Their correlation of 0.86 suggests significant overlap in exposure. BHCHX charges 0.85%/yr vs 0.30%/yr for VGHCX.

Performance

BHCHX vs. VGHCX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Health Care Fund (BHCHX) and Vanguard Health Care Fund Investor Shares (VGHCX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BHCHX achieves a -7.63% return, which is significantly lower than VGHCX's -4.67% return.

BHCHX

• 1D: -2.24%
• 1M: -0.66%
• YTD: -7.63%
• 6M: -9.29%
• 1Y: 11.35%
• 3Y*: 2.13%
• 5Y*: 0.06%
• 10Y*: —

VGHCX

• 1D: -1.56%
• 1M: -1.40%
• YTD: -4.67%
• 6M: -4.29%
• 1Y: 16.18%
• 3Y*: 8.30%
• 5Y*: 7.16%
• 10Y*: 8.79%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BHCHX vs. VGHCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
BHCHX Baron Health Care Fund	-7.63%	10.28%	1.55%	6.42%	-16.90%	15.71%	47.71%	18.75%
VGHCX Vanguard Health Care Fund Investor Shares	-4.67%	19.63%	8.99%	5.46%	-1.05%	14.36%	12.57%	21.11%

Correlation

The correlation between BHCHX and VGHCX is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since May 20, 2019	0.86

The correlation between BHCHX and VGHCX has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

Return for Risk

BHCHX vs. VGHCX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BHCHX

BHCHX Risk / Return Rank: 9
BHCHX Sharpe Ratio Rank: 10
BHCHX Sortino Ratio Rank: 10
BHCHX Omega Ratio Rank: 9
BHCHX Calmar Ratio Rank: 8
BHCHX Martin Ratio Rank: 7

VGHCX

VGHCX Risk / Return Rank: 17
VGHCX Sharpe Ratio Rank: 15
VGHCX Sortino Ratio Rank: 16
VGHCX Omega Ratio Rank: 14
VGHCX Calmar Ratio Rank: 22
VGHCX Martin Ratio Rank: 16

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BHCHX vs. VGHCX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Health Care Fund (BHCHX) and Vanguard Health Care Fund Investor Shares (VGHCX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BHCHX	VGHCX	Difference
Sharpe ratio: Return per unit of total volatility	0.77	1.08	-0.30
Sortino ratio: Return per unit of downside risk	1.20	1.67	-0.48
Omega ratio: Gain probability vs. loss probability	1.14	1.19	-0.05
Calmar ratio: Return relative to maximum drawdown	0.83	1.73	-0.90
Martin ratio: Return relative to average drawdown	1.92	4.60	-2.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BHCHX vs. VGHCX - Sharpe Ratio Comparison

The current BHCHX Sharpe Ratio is 0.77, which is comparable to the VGHCX Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of BHCHX and VGHCX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BHCHX	VGHCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.77	1.08	-0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.00	0.40	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.50	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.92	-0.46

Drawdowns

BHCHX vs. VGHCX - Drawdown Comparison

The maximum BHCHX drawdown since its inception was -28.53%, smaller than the maximum VGHCX drawdown of -36.93%. Use the drawdown chart below to compare losses from any high point for BHCHX and VGHCX.

Drawdown Indicators

	BHCHX	VGHCX	Difference
Max Drawdown Largest peak-to-trough decline	-28.53%	-36.93%	+8.40%
Max Drawdown (1Y) Largest decline over 1 year	-14.24%	-9.20%	-5.04%
Max Drawdown (3Y) Largest decline over 3 years	-20.51%	-16.08%	-4.43%
Max Drawdown (5Y) Largest decline over 5 years	-28.53%	-16.95%	-11.58%
Max Drawdown (10Y) Largest decline over 10 years	—	-27.18%	—
Current Drawdown Current decline from peak	-12.51%	-7.61%	-4.90%
Average Drawdown Average peak-to-trough decline	-11.06%	-5.25%	-5.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.11%	3.44%	+2.67%

Volatility

BHCHX vs. VGHCX - Volatility Comparison

Baron Health Care Fund (BHCHX) has a higher volatility of 5.72% compared to Vanguard Health Care Fund Investor Shares (VGHCX) at 3.79%. This indicates that BHCHX's price experiences larger fluctuations and is considered to be riskier than VGHCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BHCHX	VGHCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.72%	3.79%	+1.93%
Volatility (6M) Calculated over the trailing 6-month period	11.95%	10.35%	+1.60%
Volatility (1Y) Calculated over the trailing 1-year period	15.23%	14.75%	+0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.02%	18.21%	-1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.74%	17.64%	+2.10%

BHCHX vs. VGHCX - Expense Ratio Comparison

BHCHX has a 0.85% expense ratio, which is higher than VGHCX's 0.30% expense ratio.

Dividends

BHCHX vs. VGHCX - Dividend Comparison

BHCHX has not paid dividends to shareholders, while VGHCX's dividend yield for the trailing twelve months is around 6.93%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BHCHX Baron Health Care Fund	0.00%	0.00%	0.49%	0.00%	0.00%	1.41%	0.99%	0.00%	0.00%	0.00%	0.00%	0.00%
VGHCX Vanguard Health Care Fund Investor Shares	6.93%	6.00%	22.72%	7.17%	5.44%	8.31%	7.96%	11.82%	9.10%	7.30%	8.54%	8.16%

Frequently Asked Questions

Can I hold both BHCHX and VGHCX in my portfolio?

BHCHX and VGHCX have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BHCHX or VGHCX?

BHCHX has higher volatility (5.72%) compared to VGHCX (3.79%). In terms of maximum drawdown, BHCHX dropped -28.53% vs VGHCX's -36.93%.

Which has better risk-adjusted returns?

VGHCX currently has the higher Sharpe Ratio (1.08 vs 0.77), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.