VHT vs. IYH
VHT (Vanguard Health Care ETF) and IYH (iShares U.S. Healthcare ETF) are both Health & Biotech Equities funds - VHT tracks the MSCI US Investable Market Health Care 25/50 Index while IYH tracks the Dow Jones U.S. Health Care Index. Both are passively managed. Over the past 10 years, VHT returned 10.00%/yr vs 9.59%/yr for IYH. With a 0.98 correlation, they move nearly in lockstep. VHT charges 0.09%/yr vs 0.43%/yr for IYH.
Performance
VHT vs. IYH - Performance Comparison
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Returns By Period
In the year-to-date period, VHT achieves a -1.31% return, which is significantly higher than IYH's -2.40% return. Both investments have delivered pretty close results over the past 10 years, with VHT having a 10.00% annualized return and IYH not far behind at 9.59%.
VHT
- 1D
- 0.93%
- 1M
- 1.34%
- YTD
- -1.31%
- 6M
- -1.97%
- 1Y
- 17.91%
- 3Y*
- 6.63%
- 5Y*
- 4.45%
- 10Y*
- 10.00%
IYH
- 1D
- 0.80%
- 1M
- 0.57%
- YTD
- -2.40%
- 6M
- -2.92%
- 1Y
- 15.59%
- 3Y*
- 5.60%
- 5Y*
- 4.42%
- 10Y*
- 9.59%
VHT vs. IYH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VHT Vanguard Health Care ETF | -1.31% | 15.46% | 2.66% | 2.52% | -5.60% | 20.57% | 18.29% | 21.87% | 5.58% | 23.26% |
IYH iShares U.S. Healthcare ETF | -2.40% | 13.16% | 2.99% | 2.14% | -4.46% | 23.41% | 15.56% | 20.80% | 5.80% | 22.27% |
Correlation
The correlation between VHT and IYH 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 | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.98 |
The correlation between VHT and IYH has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.
VHT vs. IYH - Sectors Allocation Comparison
Sectors
VHT
IYH
Healthcare
Financial Services
-
Industrials
-
Technology
-
Basic Materials
-
-
Communication Services
-
-
Consumer Cyclical
-
-
Consumer Defensive
-
-
Energy
-
-
Real Estate
-
-
Utilities
-
-
Healthcare
VHT
IYH
Financial Services
VHT
IYH
-
Industrials
VHT
IYH
-
Technology
VHT
IYH
-
Basic Materials
VHT
-
IYH
-
Communication Services
VHT
-
IYH
-
Consumer Cyclical
VHT
-
IYH
-
Consumer Defensive
VHT
-
IYH
-
Energy
VHT
-
IYH
-
Real Estate
VHT
-
IYH
-
Utilities
VHT
-
IYH
-
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Return for Risk
VHT vs. IYH — Risk / Return Rank
VHT
IYH
VHT vs. IYH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and iShares U.S. Healthcare ETF (IYH). 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 | IYH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.19 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.19 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.73 | 1.47 | +0.26 |
| Martin ratioReturn relative to average drawdown | 4.26 | 3.47 | +0.79 |
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Drawdowns
VHT vs. IYH - Drawdown Comparison
The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum IYH drawdown of -43.12%. Use the drawdown chart below to compare losses from any high point for VHT and IYH.
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Drawdown Indicators
| VHT | IYH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.12% | -43.12% | +4.00% |
Max Drawdown (1Y)Largest decline over 1 year | -10.40% | -10.64% | +0.24% |
Max Drawdown (3Y)Largest decline over 3 years | -16.91% | -17.91% | +1.00% |
Max Drawdown (5Y)Largest decline over 5 years | -17.71% | -17.91% | +0.20% |
Max Drawdown (10Y)Largest decline over 10 years | -28.85% | -28.40% | -0.45% |
Current DrawdownCurrent decline from peak | -4.44% | -5.63% | +1.19% |
Average DrawdownAverage peak-to-trough decline | -5.98% | -8.95% | +2.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.22% | 4.51% | -0.29% |
Volatility
VHT vs. IYH - Volatility Comparison
Vanguard Health Care ETF (VHT) and iShares U.S. Healthcare ETF (IYH) have volatilities of 4.91% and 5.02%, 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.
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Volatility by Period
| VHT | IYH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.91% | 5.02% | -0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 10.41% | 10.60% | -0.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.70% | 15.10% | -0.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.02% | 14.97% | +0.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.97% | 16.75% | +0.22% |
VHT vs. IYH - Expense Ratio Comparison
VHT has a 0.09% expense ratio, which is lower than IYH's 0.43% expense ratio.
Dividends
VHT vs. IYH - Dividend Comparison
VHT's dividend yield for the trailing twelve months is around 1.66%, more than IYH's 1.27% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYH iShares U.S. Healthcare ETF | 1.27% | 1.19% | 1.25% | 1.18% | 1.10% | 0.94% | 1.16% | 1.14% | 1.95% | 1.10% | 1.29% | 2.02% |
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
With a correlation of 0.99, VHT and IYH 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.
IYH has higher volatility (5.02%) compared to VHT (4.91%). In terms of maximum drawdown, VHT dropped -39.12% vs IYH's -43.12%.
On 10-year performance, VHT leads with 10.00% vs 9.59% for IYH. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 4.91%. 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 10.00% return vs 9.59%. 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 0.43% for IYH.
VHT has the higher dividend yield at 1.66%, compared with 1.27% for IYH.
VHT tracks MSCI US Investable Market Health Care 25/50 Index, while IYH tracks Dow Jones U.S. Health Care Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VHT and 0.43% for IYH.
VHT currently has the higher Sharpe Ratio (1.23 vs 1.04), 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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