VGHAX vs. XHS

Last updated Jun 24, 2026

VGHAX (Vanguard Health Care Fund Admiral Shares) and XHS (SPDR S&P Health Care Services ETF) are both Health & Biotech Equities funds. VGHAX is actively managed, while XHS is passively managed. Over the past 10 years, VGHAX returned 9.65%/yr vs 8.61%/yr for XHS. A 0.71 correlation means they provide meaningful diversification when combined. VGHAX charges 0.27%/yr vs 0.35%/yr for XHS.

Performance

VGHAX vs. XHS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care Fund Admiral Shares (VGHAX) and SPDR S&P Health Care Services ETF (XHS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGHAX achieves a -0.90% return, which is significantly lower than XHS's 15.40% return. Over the past 10 years, VGHAX has outperformed XHS with an annualized return of 9.65%, while XHS has yielded a comparatively lower 8.61% annualized return.

VGHAX

• 1D: 0.94%
• 1M: 0.55%
• YTD: -0.90%
• 6M: -1.44%
• 1Y: 21.67%
• 3Y*: 9.72%
• 5Y*: 7.05%
• 10Y*: 9.65%

XHS

• 1D: 0.88%
• 1M: 8.42%
• YTD: 15.40%
• 6M: 14.24%
• 1Y: 28.59%
• 3Y*: 11.29%
• 5Y*: 1.64%
• 10Y*: 8.61%

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

VGHAX vs. XHS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGHAX Vanguard Health Care Fund Admiral Shares	-0.90%	19.72%	9.10%	5.51%	-1.00%	12.82%	12.62%	22.99%	1.07%	19.64%
XHS SPDR S&P Health Care Services ETF	15.40%	18.83%	1.76%	5.15%	-19.87%	9.76%	33.66%	18.81%	1.96%	17.65%

Correlation

The correlation between VGHAX and XHS is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.71

The correlation between VGHAX and XHS shifts across timeframes, from 0.51 (1 year) to 0.71 (all time), reflecting how their relationship changes across market environments.

VGHAX vs. XHS - Sectors Allocation Comparison

Sectors	VGHAX	XHS
Healthcare	98.3%	97.9%
Consumer Defensive	1.2%	-
Financial Services	0.0%	2.1%
Basic Materials	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

VGHAX vs. XHS — Risk / Return Rank

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

VGHAX

VGHAX Risk / Return Rank: 34
VGHAX Sharpe Ratio Rank: 31
VGHAX Sortino Ratio Rank: 35
VGHAX Omega Ratio Rank: 29
VGHAX Calmar Ratio Rank: 45
VGHAX Martin Ratio Rank: 30

XHS

XHS Risk / Return Rank: 47
XHS Sharpe Ratio Rank: 48
XHS Sortino Ratio Rank: 47
XHS Omega Ratio Rank: 47
XHS Calmar Ratio Rank: 51
XHS Martin Ratio Rank: 43

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.

VGHAX vs. XHS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care Fund Admiral Shares (VGHAX) and SPDR S&P Health Care Services ETF (XHS). 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	XHS	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.60	-0.11
Sortino ratio: Return per unit of downside risk	2.29	2.21	+0.08
Omega ratio: Gain probability vs. loss probability	1.26	1.29	-0.02
Calmar ratio: Return relative to maximum drawdown	2.43	2.39	+0.04
Martin ratio: Return relative to average drawdown	6.49	6.63	-0.14

VGHAX vs. XHS - Sharpe Ratio Comparison

The current VGHAX Sharpe Ratio is 1.50, which is comparable to the XHS Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of VGHAX and XHS, 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. XHS - Drawdown Comparison

The maximum VGHAX drawdown since its inception was -36.85%, smaller than the maximum XHS drawdown of -39.32%. Use the drawdown chart below to compare losses from any high point for VGHAX and XHS.

Drawdown Indicators

	VGHAX	XHS	Difference
Max Drawdown Largest peak-to-trough decline	-36.85%	-39.32%	+2.47%
Max Drawdown (1Y) Largest decline over 1 year	-9.19%	-11.99%	+2.80%
Max Drawdown (3Y) Largest decline over 3 years	-16.05%	-17.81%	+1.76%
Max Drawdown (5Y) Largest decline over 5 years	-16.92%	-32.62%	+15.70%
Max Drawdown (10Y) Largest decline over 10 years	-27.17%	-39.32%	+12.15%
Current Drawdown Current decline from peak	-3.97%	0.00%	-3.97%
Average Drawdown Average peak-to-trough decline	-5.61%	-10.16%	+4.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	4.32%	-0.89%

Volatility

VGHAX vs. XHS - Volatility Comparison

Vanguard Health Care Fund Admiral Shares (VGHAX) has a higher volatility of 4.75% compared to SPDR S&P Health Care Services ETF (XHS) at 4.47%. This indicates that VGHAX's price experiences larger fluctuations and is considered to be riskier than XHS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGHAX	XHS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.75%	4.47%	+0.28%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	12.25%	-1.60%
Volatility (1Y) Calculated over the trailing 1-year period	14.94%	17.92%	-2.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.16%	21.13%	-2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.60%	22.40%	-4.80%

VGHAX vs. XHS - Expense Ratio Comparison

VGHAX has a 0.27% expense ratio, which is lower than XHS's 0.35% expense ratio.

Dividends

VGHAX vs. XHS - Dividend Comparison

VGHAX's dividend yield for the trailing twelve months is around 6.73%, more than XHS's 0.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHAX Vanguard Health Care Fund Admiral Shares	6.73%	6.07%	22.84%	7.22%	5.49%	7.05%	8.02%	11.87%	9.15%	7.36%	8.60%	8.21%
XHS SPDR S&P Health Care Services ETF	0.22%	0.27%	0.38%	0.23%	0.19%	0.20%	0.23%	2.37%	0.34%	0.22%	0.28%	0.93%

Frequently Asked Questions

Can I hold both VGHAX and XHS in my portfolio?

VGHAX and XHS have a correlation of 0.51, 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 XHS?

VGHAX has higher volatility (4.75%) compared to XHS (4.47%). In terms of maximum drawdown, VGHAX dropped -36.85% vs XHS's -39.32%.

Which has better risk-adjusted returns?

XHS currently has the higher Sharpe Ratio (1.60 vs 1.50), 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.