VCR vs. VHT

Last updated Jun 9, 2026

VCR (Vanguard Consumer Discretionary ETF) and VHT (Vanguard Health Care ETF) are both exchange-traded funds - VCR is a Consumer Discretionary Equities fund tracking the MSCI US Investable Market Consumer Discretionary 25/50 Index, while VHT is a Health & Biotech Equities fund tracking the MSCI US Investable Market Health Care 25/50 Index. Both are passively managed. Over the past 10 years, VCR returned 13.45%/yr vs 9.66%/yr for VHT. A 0.64 correlation means they provide meaningful diversification when combined. VCR charges 0.10%/yr vs 0.09%/yr for VHT.

Performance

VCR vs. VHT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Consumer Discretionary ETF (VCR) and Vanguard Health Care ETF (VHT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCR achieves a -1.82% return, which is significantly lower than VHT's -1.21% return. Over the past 10 years, VCR has outperformed VHT with an annualized return of 13.45%, while VHT has yielded a comparatively lower 9.66% annualized return.

VCR

• 1D: 0.64%
• 1M: -3.13%
• YTD: -1.82%
• 6M: -0.68%
• 1Y: 10.03%
• 3Y*: 13.71%
• 5Y*: 5.83%
• 10Y*: 13.45%

VHT

• 1D: -0.29%
• 1M: 5.33%
• YTD: -1.21%
• 6M: 0.70%
• 1Y: 16.43%
• 3Y*: 7.21%
• 5Y*: 4.80%
• 10Y*: 9.66%

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

VCR vs. VHT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCR Vanguard Consumer Discretionary ETF	-1.82%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%
VHT Vanguard Health Care ETF	-1.21%	15.46%	2.66%	2.52%	-5.60%	20.57%	18.29%	21.87%	5.58%	23.26%

Correlation

The correlation between VCR and VHT is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.64

Over the past year, the correlation between VCR and VHT has dropped to 0.35 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

Return for Risk

VCR vs. VHT — Risk / Return Rank

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

VCR

VCR Risk / Return Rank: 19
VCR Sharpe Ratio Rank: 19
VCR Sortino Ratio Rank: 19
VCR Omega Ratio Rank: 18
VCR Calmar Ratio Rank: 18
VCR Martin Ratio Rank: 19

VHT

VHT Risk / Return Rank: 34
VHT Sharpe Ratio Rank: 34
VHT Sortino Ratio Rank: 37
VHT Omega Ratio Rank: 33
VHT Calmar Ratio Rank: 35
VHT Martin Ratio Rank: 30

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.

VCR vs. VHT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Discretionary ETF (VCR) 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.

	VCR	VHT	Difference
Sharpe ratio: Return per unit of total volatility	0.55	1.13	-0.58
Sortino ratio: Return per unit of downside risk	0.89	1.77	-0.88
Omega ratio: Gain probability vs. loss probability	1.10	1.20	-0.10
Calmar ratio: Return relative to maximum drawdown	0.65	1.59	-0.94
Martin ratio: Return relative to average drawdown	2.01	3.95	-1.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCR vs. VHT - Sharpe Ratio Comparison

The current VCR Sharpe Ratio is 0.55, which is lower than the VHT Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of VCR and VHT, 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

	VCR	VHT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.55	1.13	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.32	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.57	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.57	-0.06

Drawdowns

VCR vs. VHT - Drawdown Comparison

The maximum VCR drawdown since its inception was -61.54%, which is greater than VHT's maximum drawdown of -39.12%. Use the drawdown chart below to compare losses from any high point for VCR and VHT.

Drawdown Indicators

	VCR	VHT	Difference
Max Drawdown Largest peak-to-trough decline	-61.54%	-39.12%	-22.42%
Max Drawdown (1Y) Largest decline over 1 year	-15.59%	-10.40%	-5.19%
Max Drawdown (3Y) Largest decline over 3 years	-27.36%	-16.91%	-10.45%
Max Drawdown (5Y) Largest decline over 5 years	-39.20%	-17.71%	-21.49%
Max Drawdown (10Y) Largest decline over 10 years	-39.20%	-28.85%	-10.35%
Current Drawdown Current decline from peak	-6.29%	-4.34%	-1.95%
Average Drawdown Average peak-to-trough decline	-9.40%	-5.99%	-3.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.01%	4.17%	+0.84%

Volatility

VCR vs. VHT - Volatility Comparison

Vanguard Consumer Discretionary ETF (VCR) has a higher volatility of 5.30% compared to Vanguard Health Care ETF (VHT) at 4.90%. This indicates that VCR's price experiences larger fluctuations and is considered to be riskier than VHT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCR	VHT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.30%	4.90%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	13.20%	10.45%	+2.75%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	14.64%	+3.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.00%	15.02%	+8.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.42%	16.97%	+5.45%

VCR vs. VHT - Expense Ratio Comparison

VCR has a 0.10% expense ratio, which is higher than VHT's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VCR vs. VHT - Dividend Comparison

VCR's dividend yield for the trailing twelve months is around 0.74%, less than VHT's 1.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCR Vanguard Consumer Discretionary ETF	0.74%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%
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

Can I hold both VCR and VHT in my portfolio?

VCR and VHT have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCR or VHT?

VCR has higher volatility (5.30%) compared to VHT (4.90%). In terms of maximum drawdown, VCR dropped -61.54% vs VHT's -39.12%.

Which ETF is better, VCR or VHT?

On 10-year performance, VCR leads with 13.45% vs 9.66% for VHT. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 4.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCR or VHT?

Over the 10-year period, VCR has performed better with a 13.45% return vs 9.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCR or VHT?

VHT is cheaper with a 0.09% expense ratio, compared with 0.10% for VCR.

Which ETF pays a higher dividend yield, VCR or VHT?

VHT has the higher dividend yield at 1.66%, compared with 0.74% for VCR.

What is the main difference between VCR and VHT?

VCR is categorized as Consumer Discretionary Equities, while VHT is Health & Biotech Equities. VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index, while VHT tracks MSCI US Investable Market Health Care 25/50 Index. Their fees differ too: 0.10% for VCR and 0.09% for VHT.

Which has better risk-adjusted returns?

VHT currently has the higher Sharpe Ratio (1.13 vs 0.55), 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.