VHT vs. ^SPXHC

Last updated Jun 4, 2026

VHT (Vanguard Health Care ETF) is Health & Biotech Equities fund tracking the MSCI US Investable Market Health Care 25/50 Index, while ^SPXHC (S&P 500 Health Care Index) is an index. Over the past 10 years, VHT returned 9.26%/yr vs 7.48%/yr for ^SPXHC. With a 0.98 correlation, they move nearly in lockstep.

Performance

VHT vs. ^SPXHC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care ETF (VHT) and S&P 500 Health Care Index (^SPXHC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VHT achieves a -4.02% return, which is significantly higher than ^SPXHC's -5.08% return. Over the past 10 years, VHT has outperformed ^SPXHC with an annualized return of 9.26%, while ^SPXHC has yielded a comparatively lower 7.48% annualized return.

VHT

• 1D: 0.84%
• 1M: 1.45%
• YTD: -4.02%
• 6M: -4.15%
• 1Y: 14.34%
• 3Y*: 6.14%
• 5Y*: 4.51%
• 10Y*: 9.26%

^SPXHC

• 1D: 0.69%
• 1M: 1.63%
• YTD: -5.08%
• 6M: -4.98%
• 1Y: 10.85%
• 3Y*: 4.18%
• 5Y*: 3.83%
• 10Y*: 7.48%

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

VHT vs. ^SPXHC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VHT Vanguard Health Care ETF	-4.02%	15.46%	2.66%	2.52%	-5.60%	20.57%	18.29%	21.87%	5.58%	23.26%
^SPXHC S&P 500 Health Care Index	-5.08%	12.53%	0.90%	0.30%	-3.55%	24.16%	11.43%	18.68%	4.69%	20.00%

Correlation

The correlation between VHT and ^SPXHC 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	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.98

The correlation between VHT and ^SPXHC has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

Return for Risk

VHT vs. ^SPXHC — Risk / Return Rank

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

VHT

VHT Risk / Return Rank: 27
VHT Sharpe Ratio Rank: 27
VHT Sortino Ratio Rank: 28
VHT Omega Ratio Rank: 26
VHT Calmar Ratio Rank: 28
VHT Martin Ratio Rank: 25

^SPXHC

^SPXHC Risk / Return Rank: 37
^SPXHC Sharpe Ratio Rank: 37
^SPXHC Sortino Ratio Rank: 38
^SPXHC Omega Ratio Rank: 37
^SPXHC Calmar Ratio Rank: 36
^SPXHC Martin Ratio Rank: 36

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.

VHT vs. ^SPXHC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and S&P 500 Health Care Index (^SPXHC). 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.

	VHT	^SPXHC	Difference
Sharpe ratio: Return per unit of total volatility	1.00	0.75	+0.26
Sortino ratio: Return per unit of downside risk	1.57	1.21	+0.36
Omega ratio: Gain probability vs. loss probability	1.18	1.14	+0.04
Calmar ratio: Return relative to maximum drawdown	1.38	1.01	+0.37
Martin ratio: Return relative to average drawdown	3.47	2.44	+1.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VHT vs. ^SPXHC - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.00, which is higher than the ^SPXHC Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of VHT and ^SPXHC, 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

	VHT	^SPXHC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.00	0.75	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.26	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.45	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.36	+0.20

Drawdowns

VHT vs. ^SPXHC - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, roughly equal to the maximum ^SPXHC drawdown of -40.78%. Use the drawdown chart below to compare losses from any high point for VHT and ^SPXHC.

Drawdown Indicators

	VHT	^SPXHC	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-40.78%	+1.66%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-10.75%	+0.35%
Max Drawdown (3Y) Largest decline over 3 years	-16.91%	-18.01%	+1.10%
Max Drawdown (5Y) Largest decline over 5 years	-17.71%	-18.01%	+0.30%
Max Drawdown (10Y) Largest decline over 10 years	-28.85%	-28.59%	-0.26%
Current Drawdown Current decline from peak	-7.05%	-8.05%	+1.00%
Average Drawdown Average peak-to-trough decline	-5.99%	-8.32%	+2.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	4.45%	-0.31%

Volatility

VHT vs. ^SPXHC - Volatility Comparison

Vanguard Health Care ETF (VHT) and S&P 500 Health Care Index (^SPXHC) have volatilities of 4.08% and 4.13%, 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

	VHT	^SPXHC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	4.13%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	10.08%	10.18%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	14.62%	-0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.96%	14.69%	+0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.94%	16.60%	+0.34%

Frequently Asked Questions

Can I hold both VHT and ^SPXHC in my portfolio?

With a correlation of 0.99, VHT and ^SPXHC 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.

Which is riskier, VHT or ^SPXHC?

^SPXHC has higher volatility (4.13%) compared to VHT (4.08%). In terms of maximum drawdown, VHT dropped -39.12% vs ^SPXHC's -40.78%.

Which has better risk-adjusted returns?

VHT currently has the higher Sharpe Ratio (1.00 vs 0.75), 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.