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VHT vs. RWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VHT vs. RWJ

Last updated Jun 13, 2026

VHT (Vanguard Health Care ETF) and RWJ (Invesco S&P SmallCap 600 Revenue ETF) are both exchange-traded funds - VHT is a Health & Biotech Equities fund tracking the MSCI US Investable Market Health Care 25/50 Index, while RWJ is a Small Cap Value Equities fund tracking the S&P SmallCap 600 Revenue-Weighted Index. Both are passively managed. Over the past 10 years, VHT returned 9.87%/yr vs 13.64%/yr for RWJ. A 0.59 correlation means they provide meaningful diversification when combined. VHT charges 0.09%/yr vs 0.39%/yr for RWJ.

Performance

VHT vs. RWJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care ETF (VHT) and Invesco S&P SmallCap 600 Revenue ETF (RWJ). 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 -0.11% return, which is significantly lower than RWJ's 21.05% return. Over the past 10 years, VHT has underperformed RWJ with an annualized return of 9.87%, while RWJ has yielded a comparatively higher 13.64% annualized return.

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%

RWJ

1D
1.08%
1M
7.83%
YTD
21.05%
6M
17.99%
1Y
42.98%
3Y*
17.13%
5Y*
8.52%
10Y*
13.64%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VHT vs. RWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
RWJ
Invesco S&P SmallCap 600 Revenue ETF		21.05%7.75%11.81%16.21%-10.97%52.82%20.83%20.29%-16.95%5.30%

Correlation

The correlation between VHT and RWJ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.48

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

0.50

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

0.54

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

0.52

Correlation (All Time)
Calculated using the full available price history since Feb 22, 2008

0.59

The correlation between VHT and RWJ shifts across timeframes, from 0.48 (1 year) to 0.59 (all time), reflecting how their relationship changes across market environments.

VHT vs. RWJ - Sectors Allocation Comparison

Sectors
VHT
RWJ

Healthcare

100.0%
11.2%

Financial Services

0.0%
11.0%

Industrials

0.0%
16.2%

Technology

0.0%
9.9%

Basic Materials

-

5.2%

Communication Services

-

3.3%

Consumer Cyclical

-

23.9%

Consumer Defensive

-

6.9%

Energy

-

7.4%

Real Estate

-

4.0%

Utilities

-

0.9%

Healthcare

VHT
100.0%
RWJ
11.2%

Financial Services

VHT
0.0%
RWJ
11.0%

Industrials

VHT
0.0%
RWJ
16.2%

Technology

VHT
0.0%
RWJ
9.9%

Basic Materials

VHT

-

RWJ
5.2%

Communication Services

VHT

-

RWJ
3.3%

Consumer Cyclical

VHT

-

RWJ
23.9%

Consumer Defensive

VHT

-

RWJ
6.9%

Energy

VHT

-

RWJ
7.4%

Real Estate

VHT

-

RWJ
4.0%

Utilities

VHT

-

RWJ
0.9%

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

Invesco S&P SmallCap 600 Revenue ETF

Often compared with VHT:
VHT vs. XLVVHT vs. VGHCXVHT vs. VOOVHT vs. VGHAXVHT vs. FHLCVHT vs. IXJVHT vs. IYH
Often compared with RWJ:
RWJ vs. AVUVXRWJ vs. XSVMRWJ vs. RZVRWJ vs. RWKRWJ vs. CALFRWJ vs. RFVRWJ vs. FSMD

Return for Risk

VHT vs. RWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VHT
VHT Risk / Return Rank: 3434
Overall Rank
VHT Sharpe Ratio Rank: 3434
Sharpe Ratio Rank
VHT Sortino Ratio Rank: 3737
Sortino Ratio Rank
VHT Omega Ratio Rank: 3232
Omega Ratio Rank
VHT Calmar Ratio Rank: 3535
Calmar Ratio Rank
VHT Martin Ratio Rank: 3030
Martin Ratio Rank
RWJ
RWJ Risk / Return Rank: 7474
Overall Rank
RWJ Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
RWJ Sortino Ratio Rank: 7777
Sortino Ratio Rank
RWJ Omega Ratio Rank: 6969
Omega Ratio Rank
RWJ Calmar Ratio Rank: 7878
Calmar Ratio Rank
RWJ Martin Ratio Rank: 7171
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. RWJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Invesco S&P SmallCap 600 Revenue ETF (RWJ). 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.

VHTRWJDifference
Sharpe ratioReturn per unit of total volatility
1.09
2.07

-0.98

Sortino ratioReturn per unit of downside risk
1.71
2.95

-1.24

Omega ratioGain probability vs. loss probability

1.19

1.35

-0.16

Calmar ratioReturn relative to maximum drawdown

1.53

3.56

-2.02

Martin ratioReturn relative to average drawdown

3.81

11.43

-7.62

VHT vs. RWJ - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.09, which is lower than the RWJ Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VHT and RWJ, 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. RWJ - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum RWJ drawdown of -55.97%. Use the drawdown chart below to compare losses from any high point for VHT and RWJ.

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Drawdown Indicators

VHTRWJDifference

Max Drawdown

Largest peak-to-trough decline

-39.12%

-55.97%

+16.85%

Max Drawdown (1Y)

Largest decline over 1 year

-10.40%

-11.31%

+0.91%

Max Drawdown (3Y)

Largest decline over 3 years

-16.91%

-29.29%

+12.38%

Max Drawdown (5Y)

Largest decline over 5 years

-17.71%

-29.29%

+11.58%

Max Drawdown (10Y)

Largest decline over 10 years

-28.85%

-51.33%

+22.48%

Current Drawdown

Current decline from peak

-3.28%

0.00%

-3.28%

Average Drawdown

Average peak-to-trough decline

-5.99%

-9.22%

+3.23%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.19%

3.52%

+0.67%

Volatility

VHT vs. RWJ - Volatility Comparison

Vanguard Health Care ETF (VHT) and Invesco S&P SmallCap 600 Revenue ETF (RWJ) have volatilities of 4.88% and 4.67%, 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

VHTRWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.88%

4.67%

+0.21%

Volatility (6M)

Calculated over the trailing 6-month period

10.46%

12.46%

-2.00%

Volatility (1Y)

Calculated over the trailing 1-year period

14.70%

19.48%

-4.78%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.01%

23.71%

-8.70%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.97%

26.14%

-9.17%

VHT vs. RWJ - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is lower than RWJ's 0.39% expense ratio.

Dividends

VHT vs. RWJ - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.64%, more than RWJ's 0.97% yield.

PositionTTM20252024202320222021202020192018201720162015
RWJ
Invesco S&P SmallCap 600 Revenue ETF		0.97%1.11%1.15%1.34%1.02%0.61%0.89%1.22%1.44%1.11%0.60%0.74%
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 RWJ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VHT has higher volatility (4.88%) compared to RWJ (4.67%). In terms of maximum drawdown, VHT dropped -39.12% vs RWJ's -55.97%.

On 10-year performance, RWJ leads with 13.64% vs 9.87% for VHT. On fees, VHT is cheaper at 0.09% per year. On volatility, RWJ has been the lower-risk option at 4.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, RWJ has performed better with a 13.64% 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 0.39% for RWJ.

VHT has the higher dividend yield at 1.64%, compared with 0.97% for RWJ.

VHT is categorized as Health & Biotech Equities, while RWJ is Small Cap Value Equities. VHT tracks MSCI US Investable Market Health Care 25/50 Index, while RWJ tracks S&P SmallCap 600 Revenue-Weighted Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VHT and 0.39% for RWJ.

RWJ currently has the higher Sharpe Ratio (2.07 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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