VHT vs. DGS
VHT (Vanguard Health Care ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - VHT is a Health & Biotech Equities fund tracking the MSCI US Investable Market Health Care 25/50 Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, VHT returned 9.87%/yr vs 10.14%/yr for DGS. A 0.55 correlation means they provide meaningful diversification when combined. VHT charges 0.09%/yr vs 0.58%/yr for DGS.
Performance
VHT vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, VHT achieves a -0.11% return, which is significantly lower than DGS's 14.94% return. Both investments have delivered pretty close results over the past 10 years, with VHT having a 9.87% annualized return and DGS not far ahead at 10.14%.
VHT
- 1D
- -0.12%
- 1M
- 4.51%
- YTD
- -0.11%
- 6M
- 0.45%
- 1Y
- 16.49%
- 3Y*
- 7.19%
- 5Y*
- 4.78%
- 10Y*
- 9.87%
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
VHT vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VHT Vanguard Health Care ETF | -0.11% | 15.46% | 2.66% | 2.52% | -5.60% | 20.57% | 18.29% | 21.87% | 5.58% | 23.26% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between VHT and DGS is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.43 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | 0.55 |
The correlation between VHT and DGS shifts across timeframes, from 0.36 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VHT vs. DGS — Risk / Return Rank
VHT
DGS
VHT vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| VHT | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.35 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.27 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.53 | 2.38 | -0.84 |
| Martin ratioReturn relative to average drawdown | 3.81 | 7.84 | -4.03 |
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Drawdowns
VHT vs. DGS - Drawdown Comparison
The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for VHT and DGS.
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Drawdown Indicators
| VHT | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.12% | -61.83% | +22.71% |
Max Drawdown (1Y)Largest decline over 1 year | -10.40% | -10.06% | -0.34% |
Max Drawdown (3Y)Largest decline over 3 years | -16.91% | -19.31% | +2.40% |
Max Drawdown (5Y)Largest decline over 5 years | -17.71% | -24.86% | +7.15% |
Max Drawdown (10Y)Largest decline over 10 years | -28.85% | -44.08% | +15.23% |
Current DrawdownCurrent decline from peak | -3.28% | -1.05% | -2.23% |
Average DrawdownAverage peak-to-trough decline | -5.99% | -12.57% | +6.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.19% | 3.05% | +1.14% |
Volatility
VHT vs. DGS - Volatility Comparison
The current volatility for Vanguard Health Care ETF (VHT) is 4.88%, while WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) has a volatility of 7.30%. This indicates that VHT experiences smaller price fluctuations and is considered to be less risky than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VHT | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.88% | 7.30% | -2.42% |
Volatility (6M)Calculated over the trailing 6-month period | 10.46% | 14.27% | -3.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.70% | 16.60% | -1.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.01% | 15.08% | -0.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.97% | 17.39% | -0.42% |
VHT vs. DGS - Expense Ratio Comparison
VHT has a 0.09% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
VHT vs. DGS - Dividend Comparison
VHT's dividend yield for the trailing twelve months is around 1.64%, less than DGS's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
VHT Vanguard Health Care ETF | 1.64% | 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
VHT and DGS have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DGS has higher volatility (7.30%) compared to VHT (4.88%). In terms of maximum drawdown, VHT dropped -39.12% vs DGS's -61.83%.
On 10-year performance, DGS leads with 10.14% vs 9.87% for VHT. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 4.88%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DGS has performed better with a 10.14% return vs 9.87%. 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 0.58% for DGS.
DGS has the higher dividend yield at 3.20%, compared with 1.64% for VHT.
VHT is categorized as Health & Biotech Equities, while DGS is Emerging Markets Diversified. VHT tracks MSCI US Investable Market Health Care 25/50 Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.09% for VHT and 0.58% for DGS.
DGS currently has the higher Sharpe Ratio (1.44 vs 1.09), 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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