VHT vs. VFH
Compare and contrast key facts about Vanguard Health Care ETF (VHT) and Vanguard Financials ETF (VFH).
VHT and VFH are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VHT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Health Care 25/50 Index. It was launched on Jan 26, 2004. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. Both VHT and VFH are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
VHT vs. VFH - Performance Comparison
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VHT vs. VFH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VHT Vanguard Health Care ETF | -5.04% | 15.46% | 2.66% | 2.52% | -5.60% | 20.57% | 18.29% | 21.87% | 5.58% | 23.26% |
VFH Vanguard Financials ETF | -9.21% | 14.91% | 30.44% | 14.17% | -12.31% | 35.22% | -1.96% | 31.57% | -13.52% | 19.99% |
Returns By Period
In the year-to-date period, VHT achieves a -5.04% return, which is significantly higher than VFH's -9.21% return. Over the past 10 years, VHT has underperformed VFH with an annualized return of 9.72%, while VFH has yielded a comparatively higher 12.29% annualized return.
VHT
- 1D
- 2.24%
- 1M
- -7.50%
- YTD
- -5.04%
- 6M
- 5.91%
- 1Y
- 4.70%
- 3Y*
- 6.16%
- 5Y*
- 5.09%
- 10Y*
- 9.72%
VFH
- 1D
- 2.17%
- 1M
- -3.48%
- YTD
- -9.21%
- 6M
- -7.19%
- 1Y
- 2.67%
- 3Y*
- 17.94%
- 5Y*
- 9.33%
- 10Y*
- 12.29%
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VHT vs. VFH - Expense Ratio Comparison
Both VHT and VFH have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Return for Risk
VHT vs. VFH — Risk / Return Rank
VHT
VFH
VHT vs. VFH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Vanguard Financials ETF (VFH). 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 | VFH | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.27 | 0.13 | +0.13 |
Sortino ratioReturn per unit of downside risk | 0.49 | 0.32 | +0.18 |
Omega ratioGain probability vs. loss probability | 1.06 | 1.05 | +0.02 |
Calmar ratioReturn relative to maximum drawdown | 0.51 | 0.27 | +0.25 |
Martin ratioReturn relative to average drawdown | 1.09 | 0.79 | +0.30 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VHT | VFH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.27 | 0.13 | +0.13 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.34 | 0.48 | -0.14 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.58 | 0.55 | +0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.24 | +0.32 |
Correlation
The correlation between VHT and VFH is 0.62, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Dividends
VHT vs. VFH - Dividend Comparison
VHT's dividend yield for the trailing twelve months is around 1.73%, more than VFH's 1.61% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VHT Vanguard Health Care ETF | 1.73% | 1.61% | 1.53% | 1.36% | 1.33% | 1.14% | 1.21% | 1.89% | 1.38% | 1.31% | 1.45% | 1.22% |
VFH Vanguard Financials ETF | 1.61% | 1.55% | 1.75% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% |
Drawdowns
VHT vs. VFH - Drawdown Comparison
The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum VFH drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for VHT and VFH.
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Drawdown Indicators
| VHT | VFH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.12% | -78.61% | +39.49% |
Max Drawdown (1Y)Largest decline over 1 year | -10.40% | -14.75% | +4.35% |
Max Drawdown (5Y)Largest decline over 5 years | -17.71% | -25.66% | +7.95% |
Max Drawdown (10Y)Largest decline over 10 years | -28.85% | -44.42% | +15.57% |
Current DrawdownCurrent decline from peak | -8.05% | -11.97% | +3.92% |
Average DrawdownAverage peak-to-trough decline | -5.98% | -18.62% | +12.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.96% | 4.93% | +0.03% |
Volatility
VHT vs. VFH - Volatility Comparison
Vanguard Health Care ETF (VHT) has a higher volatility of 5.10% compared to Vanguard Financials ETF (VFH) at 4.85%. This indicates that VHT's price experiences larger fluctuations and is considered to be riskier than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VHT | VFH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.10% | 4.85% | +0.25% |
Volatility (6M)Calculated over the trailing 6-month period | 10.28% | 11.76% | -1.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.61% | 19.97% | -2.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.85% | 19.38% | -4.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.94% | 22.56% | -5.62% |