VGHAX vs. VFWAX

Last updated Aug 2, 2026

VGHAX (Vanguard Health Care Fund Admiral Shares) and VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) are both mutual funds - VGHAX is a Health & Biotech Equities fund actively managed by Vanguard, while VFWAX is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. VGHAX is actively managed, while VFWAX is passively managed. Over the past 10 years, VGHAX returned 9.23%/yr vs 9.57%/yr for VFWAX. Their 0.64 correlation means they have sometimes moved together and sometimes differently. VGHAX charges 0.27%/yr vs 0.11%/yr for VFWAX.

Performance

VGHAX vs. VFWAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care Fund Admiral Shares (VGHAX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGHAX achieves a 4.47% return, which is significantly lower than VFWAX's 13.50% return. Both investments have delivered pretty close results over the past 10 years, with VGHAX having a 9.23% annualized return and VFWAX not far ahead at 9.57%.

VGHAX

• 1D: -1.27%
• 1M: -2.83%
• 6M: 4.42%
• YTD: 4.47%
• 1Y: 28.66%
• 3Y*: 11.60%
• 5Y*: 7.96%
• 10Y*: 9.23%
• ALL TIME*: 10.07%

VFWAX

• 1D: 2.83%
• 1M: 0.35%
• 6M: 7.39%
• YTD: 13.50%
• 1Y: 28.82%
• 3Y*: 17.17%
• 5Y*: 9.17%
• 10Y*: 9.57%
• ALL TIME*: 8.05%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	$0.00	$0.00	$0.00
VGHAX Vanguard Health Care Fund Admiral Shares	$0.00	$0.00	$0.00

VGHAX vs. VFWAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGHAX Vanguard Health Care Fund Admiral Shares	4.47%	19.72%	9.10%	5.51%	-1.00%	12.82%	12.62%	22.99%	1.07%	19.64%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	13.50%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%

Correlation

The correlation between VGHAX and VFWAX is 0.35, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.35
Correlation (3Y) Balances recent behavior with more history.	0.49
Correlation (5Y) Shows whether the relationship held over a longer period.	0.56
Correlation (10Y) Provides a long-term view across more market conditions.	0.61
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011	0.64

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

VGHAX vs. VFWAX - Sectors Allocation Comparison

Sectors	VGHAX	VFWAX
Healthcare	99.5%	6.8%
Consumer Defensive	1.2%	4.9%
Financial Services	0.0%	23.1%
Basic Materials	0.0%	6.5%
Communication Services	-	4.2%
Consumer Cyclical	-	7.6%
Energy	-	4.3%
Industrials	-	14.7%
Real Estate	-	1.8%
Technology	-	23.2%
Utilities	-	3.0%

Return for Risk

VGHAX vs. VFWAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGHAX

VGHAX Risk / Return Rank: 76
VGHAX Sharpe Ratio Rank: 77
VGHAX Sortino Ratio Rank: 79
VGHAX Omega Ratio Rank: 72
VGHAX Calmar Ratio Rank: 86
VGHAX Martin Ratio Rank: 63

VFWAX

VFWAX Risk / Return Rank: 74
VFWAX Sharpe Ratio Rank: 75
VFWAX Sortino Ratio Rank: 71
VFWAX Omega Ratio Rank: 74
VFWAX Calmar Ratio Rank: 76
VFWAX Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGHAX vs. VFWAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care Fund Admiral Shares (VGHAX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). 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.

	VGHAX	VFWAX	Difference
Sharpe ratio: Return per unit of total volatility	1.77	1.69	+0.08
Sortino ratio: Return per unit of downside risk	2.68	2.32	+0.36
Omega ratio: Gain probability vs. loss probability	1.31	1.31	-0.01
Calmar ratio: Return relative to maximum drawdown	2.96	2.41	+0.55
Martin ratio: Return relative to average drawdown	7.79	8.94	-1.14

VGHAX vs. VFWAX - Sharpe Ratio Comparison

The current VGHAX Sharpe Ratio is 1.77, which is comparable to the VFWAX Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of VGHAX and VFWAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGHAX vs. VFWAX - Drawdown Comparison

The maximum VGHAX drawdown since its inception was -36.85%, which is greater than VFWAX's maximum drawdown of -34.93%. Use the drawdown chart below to compare losses from any high point for VGHAX and VFWAX.

Drawdown Indicators

	VGHAX	VFWAX	Difference
Max Drawdown Largest peak-to-trough decline	-36.85%	-34.93%	-1.92%
Max Drawdown (1Y) Largest decline over 1 year	-9.19%	-11.34%	+2.15%
Max Drawdown (3Y) Largest decline over 3 years	-16.05%	-13.25%	-2.80%
Max Drawdown (5Y) Largest decline over 5 years	-16.92%	-29.20%	+12.28%
Max Drawdown (10Y) Largest decline over 10 years	-27.17%	-34.93%	+7.76%
Current Drawdown Current decline from peak	-3.46%	-2.46%	-1.00%
Average Drawdown Average peak-to-trough decline	-5.59%	-7.14%	+1.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	3.05%	+0.43%

Volatility

VGHAX vs. VFWAX - Volatility Comparison

Vanguard Health Care Fund Admiral Shares (VGHAX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) have volatilities of 5.44% and 5.51%, 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.

Volatility by Period

	VGHAX	VFWAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.44%	5.51%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	11.65%	14.33%	-2.68%
Volatility (1Y) Calculated over the trailing 1-year period	15.39%	16.21%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	15.52%	+2.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.61%	15.98%	+1.63%

VGHAX vs. VFWAX - Expense Ratio Comparison

VGHAX has a 0.27% expense ratio, which is higher than VFWAX's 0.11% 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

VGHAX vs. VFWAX - Dividend Comparison

VGHAX's dividend yield for the trailing twelve months is around 6.38%, more than VFWAX's 2.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	2.52%	3.05%	3.20%	3.28%	3.07%	3.03%	1.97%	3.07%	3.24%	2.67%	2.96%	2.95%
VGHAX Vanguard Health Care Fund Admiral Shares	6.38%	6.07%	22.84%	7.22%	5.49%	7.05%	8.02%	11.87%	9.15%	7.36%	8.60%	8.21%

Frequently Asked Questions

Can I hold both VGHAX and VFWAX in my portfolio?

VGHAX and VFWAX 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, VGHAX or VFWAX?

VFWAX has higher volatility (5.51%) compared to VGHAX (5.44%). In terms of maximum drawdown, VGHAX dropped -36.85% vs VFWAX's -34.93%.

Which has better risk-adjusted returns?

VGHAX currently has the higher Sharpe Ratio (1.77 vs 1.69), 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.