IYH vs. VHT
IYH (iShares U.S. Healthcare ETF) and VHT (Vanguard Health Care ETF) are both Health & Biotech Equities funds - IYH tracks the Dow Jones U.S. Health Care Index while VHT tracks the MSCI US Investable Market Health Care 25/50 Index. Both are passively managed. Over the past 10 years, IYH returned 9.59%/yr vs 10.00%/yr for VHT. With a 0.98 correlation, they move nearly in lockstep. IYH charges 0.43%/yr vs 0.09%/yr for VHT.
Performance
IYH vs. VHT - Performance Comparison
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Returns By Period
In the year-to-date period, IYH achieves a -2.40% return, which is significantly lower than VHT's -1.31% return. Both investments have delivered pretty close results over the past 10 years, with IYH having a 9.59% annualized return and VHT not far ahead at 10.00%.
IYH
- 1D
- 0.80%
- 1M
- 0.57%
- YTD
- -2.40%
- 6M
- -2.92%
- 1Y
- 15.59%
- 3Y*
- 5.60%
- 5Y*
- 4.42%
- 10Y*
- 9.59%
VHT
- 1D
- 0.93%
- 1M
- 1.34%
- YTD
- -1.31%
- 6M
- -1.97%
- 1Y
- 17.91%
- 3Y*
- 6.63%
- 5Y*
- 4.45%
- 10Y*
- 10.00%
IYH vs. VHT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYH iShares U.S. Healthcare ETF | -2.40% | 13.16% | 2.99% | 2.14% | -4.46% | 23.41% | 15.56% | 20.80% | 5.80% | 22.27% |
VHT Vanguard Health Care ETF | -1.31% | 15.46% | 2.66% | 2.52% | -5.60% | 20.57% | 18.29% | 21.87% | 5.58% | 23.26% |
Correlation
The correlation between IYH and VHT is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.98 |
The correlation between IYH and VHT has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.
IYH vs. VHT - Sectors Allocation Comparison
Sectors
IYH
VHT
Healthcare
Basic Materials
-
-
Communication Services
-
-
Consumer Cyclical
-
-
Consumer Defensive
-
-
Energy
-
-
Financial Services
-
Industrials
-
Real Estate
-
-
Technology
-
Utilities
-
-
Healthcare
IYH
VHT
Basic Materials
IYH
-
VHT
-
Communication Services
IYH
-
VHT
-
Consumer Cyclical
IYH
-
VHT
-
Consumer Defensive
IYH
-
VHT
-
Energy
IYH
-
VHT
-
Financial Services
IYH
-
VHT
Industrials
IYH
-
VHT
Real Estate
IYH
-
VHT
-
Technology
IYH
-
VHT
Utilities
IYH
-
VHT
-
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Return for Risk
IYH vs. VHT — Risk / Return Rank
IYH
VHT
IYH vs. VHT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Healthcare ETF (IYH) and Vanguard Health Care ETF (VHT). 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.
| IYH | VHT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.19 | ||
| Sortino ratioReturn per unit of downside risk | -0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.22 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.47 | 1.73 | -0.26 |
| Martin ratioReturn relative to average drawdown | 3.47 | 4.26 | -0.79 |
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Drawdowns
IYH vs. VHT - Drawdown Comparison
The maximum IYH drawdown since its inception was -43.12%, which is greater than VHT's maximum drawdown of -39.12%. Use the drawdown chart below to compare losses from any high point for IYH and VHT.
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Drawdown Indicators
| IYH | VHT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.12% | -39.12% | -4.00% |
Max Drawdown (1Y)Largest decline over 1 year | -10.64% | -10.40% | -0.24% |
Max Drawdown (3Y)Largest decline over 3 years | -17.91% | -16.91% | -1.00% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -17.71% | -0.20% |
Max Drawdown (10Y)Largest decline over 10 years | -28.40% | -28.85% | +0.45% |
Current DrawdownCurrent decline from peak | -5.63% | -4.44% | -1.19% |
Average DrawdownAverage peak-to-trough decline | -8.95% | -5.98% | -2.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.51% | 4.22% | +0.29% |
Volatility
IYH vs. VHT - Volatility Comparison
iShares U.S. Healthcare ETF (IYH) and Vanguard Health Care ETF (VHT) have volatilities of 5.02% and 4.91%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYH | VHT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.02% | 4.91% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 10.60% | 10.41% | +0.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.10% | 14.70% | +0.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.97% | 15.02% | -0.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.75% | 16.97% | -0.22% |
IYH vs. VHT - Expense Ratio Comparison
IYH has a 0.43% expense ratio, which is higher than VHT's 0.09% expense ratio.
Dividends
IYH vs. VHT - Dividend Comparison
IYH's dividend yield for the trailing twelve months is around 1.27%, less than VHT's 1.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYH iShares U.S. Healthcare ETF | 1.27% | 1.19% | 1.25% | 1.18% | 1.10% | 0.94% | 1.16% | 1.14% | 1.95% | 1.10% | 1.29% | 2.02% |
VHT Vanguard Health Care ETF | 1.66% | 1.61% | 1.53% | 1.36% | 1.33% | 1.14% | 1.21% | 1.89% | 1.38% | 1.31% | 1.45% | 1.22% |
Frequently Asked Questions
With a correlation of 0.99, IYH and VHT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IYH has higher volatility (5.02%) compared to VHT (4.91%). In terms of maximum drawdown, IYH dropped -43.12% vs VHT's -39.12%.
On 10-year performance, VHT leads with 10.00% vs 9.59% for IYH. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VHT has performed better with a 10.00% return vs 9.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VHT is cheaper with a 0.09% expense ratio, compared with 0.43% for IYH.
VHT has the higher dividend yield at 1.66%, compared with 1.27% for IYH.
IYH tracks Dow Jones U.S. Health Care Index, while VHT tracks MSCI US Investable Market Health Care 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.43% for IYH and 0.09% for VHT.
VHT currently has the higher Sharpe Ratio (1.23 vs 1.04), 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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