VHT vs. FHLC

Last updated Jun 9, 2026

VHT (Vanguard Health Care ETF) and FHLC (Fidelity MSCI Health Care Index ETF) are both Health & Biotech Equities funds - VHT tracks the MSCI US Investable Market Health Care 25/50 Index while FHLC tracks the MSCI USA IMI Health Care Index. Both are passively managed. Over the past 10 years, VHT returned 9.66%/yr vs 9.56%/yr for FHLC. With a 0.99 correlation, they move nearly in lockstep. VHT charges 0.09%/yr vs 0.08%/yr for FHLC.

Performance

VHT vs. FHLC - Performance Comparison

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

Returns By Period

In the year-to-date period, VHT achieves a -1.21% return, which is significantly lower than FHLC's -1.04% return. Both investments have delivered pretty close results over the past 10 years, with VHT having a 9.66% annualized return and FHLC not far behind at 9.56%.

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%

FHLC

• 1D: -0.23%
• 1M: 5.45%
• YTD: -1.04%
• 6M: 0.82%
• 1Y: 16.51%
• 3Y*: 7.13%
• 5Y*: 4.80%
• 10Y*: 9.56%

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

VHT vs. FHLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
FHLC Fidelity MSCI Health Care Index ETF	-1.04%	15.42%	2.48%	2.58%	-5.55%	20.39%	18.13%	21.94%	4.71%	23.34%

Correlation

The correlation between VHT and FHLC is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.99

The correlation between VHT and FHLC has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VHT vs. FHLC - Sectors Allocation Comparison

Sectors	VHT	FHLC
Healthcare	100.0%	99.6%
Financial Services	0.0%	0.1%
Industrials	0.0%	0.0%
Technology	0.0%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VHT vs. FHLC — Risk / Return Rank

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

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

FHLC

FHLC Risk / Return Rank: 34
FHLC Sharpe Ratio Rank: 35
FHLC Sortino Ratio Rank: 37
FHLC Omega Ratio Rank: 33
FHLC Calmar Ratio Rank: 36
FHLC 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.

VHT vs. FHLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Fidelity MSCI Health Care Index ETF (FHLC). 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	FHLC	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.14	-0.01
Sortino ratio: Return per unit of downside risk	1.77	1.78	-0.01
Omega ratio: Gain probability vs. loss probability	1.20	1.20	0.00
Calmar ratio: Return relative to maximum drawdown	1.59	1.60	-0.01
Martin ratio: Return relative to average drawdown	3.95	4.00	-0.05
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. FHLC - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.13, which is comparable to the FHLC Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VHT and FHLC, 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	FHLC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	1.14	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.32	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.57	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.62	-0.05

Drawdowns

VHT vs. FHLC - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, which is greater than FHLC's maximum drawdown of -28.76%. Use the drawdown chart below to compare losses from any high point for VHT and FHLC.

Drawdown Indicators

	VHT	FHLC	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-28.76%	-10.36%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-10.38%	-0.02%
Max Drawdown (3Y) Largest decline over 3 years	-16.91%	-16.87%	-0.04%
Max Drawdown (5Y) Largest decline over 5 years	-17.71%	-17.73%	+0.02%
Max Drawdown (10Y) Largest decline over 10 years	-28.85%	-28.76%	-0.09%
Current Drawdown Current decline from peak	-4.34%	-4.18%	-0.16%
Average Drawdown Average peak-to-trough decline	-5.99%	-5.19%	-0.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	4.14%	+0.03%

Volatility

VHT vs. FHLC - Volatility Comparison

Vanguard Health Care ETF (VHT) and Fidelity MSCI Health Care Index ETF (FHLC) have volatilities of 4.90% and 4.86%, 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	FHLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	4.86%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	10.45%	10.49%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.64%	14.62%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.02%	15.02%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	16.84%	+0.13%

VHT vs. FHLC - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is higher than FHLC's 0.08% 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

VHT vs. FHLC - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.66%, more than FHLC's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHLC Fidelity MSCI Health Care Index ETF	1.38%	1.40%	1.51%	1.40%	1.30%	1.16%	1.45%	1.18%	1.38%	1.38%	1.40%	2.07%
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 VHT and FHLC in my portfolio?

With a correlation of 1.00, VHT and FHLC 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 FHLC?

VHT has higher volatility (4.90%) compared to FHLC (4.86%). In terms of maximum drawdown, VHT dropped -39.12% vs FHLC's -28.76%.

Which ETF is better, VHT or FHLC?

On 10-year performance, VHT leads with 9.66% vs 9.56% for FHLC. On fees, FHLC is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VHT or FHLC?

Over the 10-year period, VHT has performed better with a 9.66% return vs 9.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VHT or FHLC?

FHLC is cheaper with a 0.08% expense ratio, compared with 0.09% for VHT.

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

VHT has the higher dividend yield at 1.66%, compared with 1.38% for FHLC.

What is the main difference between VHT and FHLC?

VHT tracks MSCI US Investable Market Health Care 25/50 Index, while FHLC tracks MSCI USA IMI Health Care Index. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.09% for VHT and 0.08% for FHLC.

Which has better risk-adjusted returns?

FHLC currently has the higher Sharpe Ratio (1.14 vs 1.13), 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.