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VHT vs. IHI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VHT vs. IHI

Last updated Jun 26, 2026

VHT (Vanguard Health Care ETF) and IHI (iShares U.S. Medical Devices ETF) are both Health & Biotech Equities funds - VHT tracks the MSCI US Investable Market Health Care 25/50 Index while IHI tracks the Dow Jones U.S. Select Medical Equipment Index. Both are passively managed. Over the past 10 years, VHT returned 10.60%/yr vs 9.29%/yr for IHI. Their correlation of 0.84 suggests significant overlap in exposure. VHT charges 0.09%/yr vs 0.38%/yr for IHI.

Performance

VHT vs. IHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care ETF (VHT) and iShares U.S. Medical Devices ETF (IHI). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VHT achieves a 2.53% return, which is significantly higher than IHI's -19.12% return. Over the past 10 years, VHT has outperformed IHI with an annualized return of 10.60%, while IHI has yielded a comparatively lower 9.29% annualized return.

VHT

1D
1.49%
1M
6.03%
YTD
2.53%
6M
1.61%
1Y
20.81%
3Y*
8.23%
5Y*
5.01%
10Y*
10.60%

IHI

1D
1.07%
1M
-0.29%
YTD
-19.12%
6M
-19.87%
1Y
-18.46%
3Y*
-2.75%
5Y*
-3.09%
10Y*
9.29%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VHT vs. IHI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VHT
Vanguard Health Care ETF		2.53%15.46%2.66%2.52%-5.60%20.57%18.29%21.87%5.58%23.26%
IHI
iShares U.S. Medical Devices ETF		-19.12%6.88%8.62%3.24%-19.80%21.03%24.17%32.75%15.45%30.81%

Correlation

The correlation between VHT and IHI is 0.68, 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

0.68

Correlation (3Y)
Calculated over the trailing 3-year period

0.72

Correlation (5Y)
Calculated over the trailing 5-year period

0.80

Correlation (10Y)
Calculated over the trailing 10-year period

0.83

Correlation (All Time)
Calculated using the full available price history since May 5, 2006

0.84

The correlation between VHT and IHI shifts across timeframes, from 0.68 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

VHT vs. IHI - Sectors Allocation Comparison

Sectors
VHT
IHI

Healthcare

100.0%
100.0%

Financial Services

0.0%

-

Industrials

0.0%
0.2%

Technology

0.0%

-

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Real Estate

-

-

Utilities

-

-

Healthcare

VHT
100.0%
IHI
100.0%

Financial Services

VHT
0.0%
IHI

-

Industrials

VHT
0.0%
IHI
0.2%

Technology

VHT
0.0%
IHI

-

Basic Materials

VHT

-

IHI

-

Communication Services

VHT

-

IHI

-

Consumer Cyclical

VHT

-

IHI

-

Consumer Defensive

VHT

-

IHI

-

Energy

VHT

-

IHI

-

Real Estate

VHT

-

IHI

-

Utilities

VHT

-

IHI

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Health Care ETF

iShares U.S. Medical Devices ETF

Often compared with VHT:
VHT vs. XLVVHT vs. VGHCXVHT vs. VOOVHT vs. VGHAXVHT vs. FHLCVHT vs. IXJVHT vs. IYH
Often compared with IHI:
IHI vs. XLVIHI vs. XHEIHI vs. SPYIHI vs. IHFIHI vs. FHLCIHI vs. IXJIHI vs. VOO

Return for Risk

VHT vs. IHI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VHT
VHT Risk / Return Rank: 4444
Overall Rank
VHT Sharpe Ratio Rank: 4646
Sharpe Ratio Rank
VHT Sortino Ratio Rank: 5151
Sortino Ratio Rank
VHT Omega Ratio Rank: 4343
Omega Ratio Rank
VHT Calmar Ratio Rank: 4646
Calmar Ratio Rank
VHT Martin Ratio Rank: 3636
Martin Ratio Rank
IHI
IHI Risk / Return Rank: 22
Overall Rank
IHI Sharpe Ratio Rank: 11
Sharpe Ratio Rank
IHI Sortino Ratio Rank: 22
Sortino Ratio Rank
IHI Omega Ratio Rank: 22
Omega Ratio Rank
IHI Calmar Ratio Rank: 33
Calmar Ratio Rank
IHI Martin Ratio Rank: 11
Martin Ratio Rank
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. IHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and iShares U.S. Medical Devices ETF (IHI). 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.

VHTIHIDifference
Sharpe ratioReturn per unit of total volatility
1.42
-1.06

+2.47

Sortino ratioReturn per unit of downside risk
2.18
-1.44

+3.62

Omega ratioGain probability vs. loss probability

1.25

0.84

+0.41

Calmar ratioReturn relative to maximum drawdown

2.01

-0.71

+2.72

Martin ratioReturn relative to average drawdown

4.94

-1.59

+6.53

VHT vs. IHI - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.42, which is higher than the IHI Sharpe Ratio of -1.06. The chart below compares the historical Sharpe Ratios of VHT and IHI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VHT vs. IHI - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum IHI drawdown of -49.65%. Use the drawdown chart below to compare losses from any high point for VHT and IHI.

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Drawdown Indicators

VHTIHIDifference

Max Drawdown

Largest peak-to-trough decline

-39.12%

-49.65%

+10.53%

Max Drawdown (1Y)

Largest decline over 1 year

-10.40%

-26.11%

+15.71%

Max Drawdown (3Y)

Largest decline over 3 years

-16.91%

-26.64%

+9.73%

Max Drawdown (5Y)

Largest decline over 5 years

-17.71%

-33.12%

+15.41%

Max Drawdown (10Y)

Largest decline over 10 years

-28.85%

-33.25%

+4.40%

Current Drawdown

Current decline from peak

-0.72%

-23.63%

+22.91%

Average Drawdown

Average peak-to-trough decline

-5.98%

-8.36%

+2.38%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.23%

11.61%

-7.38%

Volatility

VHT vs. IHI - Volatility Comparison

The current volatility for Vanguard Health Care ETF (VHT) is 5.11%, while iShares U.S. Medical Devices ETF (IHI) has a volatility of 6.93%. This indicates that VHT experiences smaller price fluctuations and is considered to be less risky than IHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VHTIHIDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.11%

6.93%

-1.82%

Volatility (6M)

Calculated over the trailing 6-month period

10.58%

13.89%

-3.31%

Volatility (1Y)

Calculated over the trailing 1-year period

14.77%

17.54%

-2.77%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.04%

19.10%

-4.06%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.95%

19.81%

-2.86%

VHT vs. IHI - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is lower than IHI's 0.38% expense ratio.

Dividends

VHT vs. IHI - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.94%, more than IHI's 0.48% yield.

PositionTTM20252024202320222021202020192018201720162015
IHI
iShares U.S. Medical Devices ETF		0.48%0.34%0.46%0.53%0.45%0.25%0.25%0.33%0.26%0.37%0.55%1.28%
VHT
Vanguard Health Care ETF		1.94%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 IHI have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IHI has higher volatility (6.93%) compared to VHT (5.11%). In terms of maximum drawdown, VHT dropped -39.12% vs IHI's -49.65%.

On 10-year performance, VHT leads with 10.60% vs 9.29% for IHI. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 5.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VHT has performed better with a 10.60% return vs 9.29%. 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 0.38% for IHI.

VHT has the higher dividend yield at 1.94%, compared with 0.48% for IHI.

VHT tracks MSCI US Investable Market Health Care 25/50 Index, while IHI tracks Dow Jones U.S. Select Medical Equipment Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VHT and 0.38% for IHI.

VHT currently has the higher Sharpe Ratio (1.42 vs -1.06), 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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