IHF vs. VNQ
IHF (iShares U.S. Healthcare Providers ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IHF is a Health & Biotech Equities fund tracking the Dow Jones U.S. Select Health Care Providers Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, IHF returned 8.92%/yr vs 5.44%/yr for VNQ. At a 0.49 correlation, their price movements are largely independent. IHF charges 0.43%/yr vs 0.13%/yr for VNQ.
Performance
IHF vs. VNQ - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with IHF having a 12.14% return and VNQ slightly lower at 11.72%. Over the past 10 years, IHF has outperformed VNQ with an annualized return of 8.92%, while VNQ has yielded a comparatively lower 5.44% annualized return.
IHF
- 1D
- 0.20%
- 1M
- 5.26%
- YTD
- 12.14%
- 6M
- 9.79%
- 1Y
- 13.12%
- 3Y*
- 3.52%
- 5Y*
- 1.18%
- 10Y*
- 8.92%
VNQ
- 1D
- -0.70%
- 1M
- 4.16%
- YTD
- 11.72%
- 6M
- 11.19%
- 1Y
- 13.22%
- 3Y*
- 9.58%
- 5Y*
- 2.68%
- 10Y*
- 5.44%
IHF vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IHF iShares U.S. Healthcare Providers ETF | 12.14% | 0.92% | -7.90% | -1.11% | -7.11% | 24.46% | 17.67% | 22.34% | 9.56% | 25.45% |
VNQ Vanguard Real Estate ETF | 11.72% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between IHF and VNQ is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.40 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.50 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.45 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.49 |
The correlation between IHF and VNQ shifts across timeframes, from 0.34 (1 year) to 0.50 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IHF vs. VNQ — Risk / Return Rank
IHF
VNQ
IHF vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Healthcare Providers ETF (IHF) and Vanguard Real Estate ETF (VNQ). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IHF | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.38 | ||
| Sortino ratioReturn per unit of downside risk | -0.53 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.18 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.67 | 1.59 | -0.92 |
| Martin ratioReturn relative to average drawdown | 1.55 | 5.01 | -3.47 |
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Drawdowns
IHF vs. VNQ - Drawdown Comparison
The maximum IHF drawdown since its inception was -58.42%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for IHF and VNQ.
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Drawdown Indicators
| IHF | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.42% | -73.07% | +14.65% |
Max Drawdown (1Y)Largest decline over 1 year | -19.72% | -8.34% | -11.38% |
Max Drawdown (3Y)Largest decline over 3 years | -29.85% | -17.46% | -12.39% |
Max Drawdown (5Y)Largest decline over 5 years | -29.85% | -34.48% | +4.63% |
Max Drawdown (10Y)Largest decline over 10 years | -35.23% | -42.40% | +7.17% |
Current DrawdownCurrent decline from peak | -6.95% | -0.70% | -6.25% |
Average DrawdownAverage peak-to-trough decline | -10.64% | -13.61% | +2.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.51% | 2.64% | +5.87% |
Volatility
IHF vs. VNQ - Volatility Comparison
iShares U.S. Healthcare Providers ETF (IHF) has a higher volatility of 5.07% compared to Vanguard Real Estate ETF (VNQ) at 4.74%. This indicates that IHF's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IHF | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.07% | 4.74% | +0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 16.07% | 9.79% | +6.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.85% | 13.54% | +8.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.18% | 18.85% | +0.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.02% | 20.72% | +0.30% |
IHF vs. VNQ - Expense Ratio Comparison
IHF has a 0.43% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
IHF vs. VNQ - Dividend Comparison
IHF's dividend yield for the trailing twelve months is around 1.09%, less than VNQ's 3.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHF iShares U.S. Healthcare Providers ETF | 1.09% | 1.05% | 0.86% | 0.79% | 0.74% | 0.56% | 0.53% | 0.58% | 4.01% | 0.19% | 0.25% | 0.20% |
VNQ Vanguard Real Estate ETF | 3.56% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
IHF and VNQ have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IHF has higher volatility (5.07%) compared to VNQ (4.74%). In terms of maximum drawdown, IHF dropped -58.42% vs VNQ's -73.07%.
On 10-year performance, IHF leads with 8.92% vs 5.44% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IHF has performed better with a 8.92% return vs 5.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.43% for IHF.
VNQ has the higher dividend yield at 3.56%, compared with 1.09% for IHF.
IHF is categorized as Health & Biotech Equities, while VNQ is REIT. IHF tracks Dow Jones U.S. Select Health Care Providers Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.43% for IHF and 0.13% for VNQ.
VNQ currently has the higher Sharpe Ratio (0.98 vs 0.60), 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.
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