VHT vs. VGHCX

Last updated Aug 4, 2026

VHT (Vanguard Health Care ETF) and VGHCX (Vanguard Health Care Fund Investor Shares) are both Health & Biotech Equities funds from Vanguard. VHT is passively managed, while VGHCX is actively managed. Over the past 10 years, VHT returned 9.88%/yr vs 9.24%/yr for VGHCX. Their correlation of 0.94 means they have usually moved in the same direction. VHT charges 0.09%/yr vs 0.33%/yr for VGHCX.

Performance

VHT vs. VGHCX - Performance Comparison

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

Returns By Period

In the year-to-date period, VHT achieves a 6.55% return, which is significantly higher than VGHCX's 3.43% return. Over the past 10 years, VHT has outperformed VGHCX with an annualized return of 9.88%, while VGHCX has yielded a comparatively lower 9.24% annualized return.

VHT

• 1D: -0.10%
• 1M: -1.26%
• 6M: 6.12%
• YTD: 6.55%
• 1Y: 27.80%
• 3Y*: 9.41%
• 5Y*: 4.81%
• 10Y*: 9.88%
• ALL TIME*: 9.91%

VGHCX

• 1D: -0.96%
• 1M: -3.77%
• 6M: 2.40%
• YTD: 3.43%
• 1Y: 27.35%
• 3Y*: 11.40%
• 5Y*: 7.68%
• 10Y*: 9.24%
• ALL TIME*: 14.57%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VGHCX Vanguard Health Care Fund Investor Shares	$0.00	$0.00	$0.00
VHT Vanguard Health Care ETF	$69.93M	$73.70M	$74.65M

VHT vs. VGHCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VHT Vanguard Health Care ETF	6.55%	15.46%	2.66%	2.52%	-5.60%	20.57%	18.29%	21.87%	5.58%	23.26%
VGHCX Vanguard Health Care Fund Investor Shares	3.43%	19.63%	8.99%	5.46%	-1.05%	14.36%	12.57%	22.93%	1.03%	19.59%

Correlation

The correlation between VHT and VGHCX is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.94

The correlation between VHT and VGHCX has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

VHT vs. VGHCX - Sectors Allocation Comparison

Sectors	VHT	VGHCX
Healthcare	99.2%	99.5%
Technology	0.4%	-
Financial Services	0.0%	0.0%
Industrials	0.0%	-
Basic Materials	-	0.0%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	1.2%
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VHT vs. VGHCX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VHT

VHT Risk / Return Rank: 74
VHT Sharpe Ratio Rank: 79
VHT Sortino Ratio Rank: 85
VHT Omega Ratio Rank: 75
VHT Calmar Ratio Rank: 76
VHT Martin Ratio Rank: 55

VGHCX

VGHCX Risk / Return Rank: 75
VGHCX Sharpe Ratio Rank: 77
VGHCX Sortino Ratio Rank: 80
VGHCX Omega Ratio Rank: 71
VGHCX Calmar Ratio Rank: 86
VGHCX Martin Ratio Rank: 58

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VHT vs. VGHCX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Vanguard Health Care Fund Investor Shares (VGHCX). 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	VGHCX	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.86	-0.02
Sortino ratio: Return per unit of downside risk	2.85	2.84	+0.01
Omega ratio: Gain probability vs. loss probability	1.32	1.32	0.00
Calmar ratio: Return relative to maximum drawdown	2.68	3.10	-0.41
Martin ratio: Return relative to average drawdown	6.64	8.13	-1.49

VHT vs. VGHCX - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.84, which is comparable to the VGHCX Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of VHT and VGHCX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VHT vs. VGHCX - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, which is greater than VGHCX's maximum drawdown of -36.93%. Use the drawdown chart below to compare losses from any high point for VHT and VGHCX.

Drawdown Indicators

	VHT	VGHCX	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-36.93%	-2.19%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-9.20%	-1.20%
Max Drawdown (3Y) Largest decline over 3 years	-16.91%	-16.08%	-0.83%
Max Drawdown (5Y) Largest decline over 5 years	-17.71%	-16.95%	-0.76%
Max Drawdown (10Y) Largest decline over 10 years	-28.85%	-27.18%	-1.67%
Current Drawdown Current decline from peak	-2.78%	-4.39%	+1.61%
Average Drawdown Average peak-to-trough decline	-5.96%	-5.24%	-0.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.20%	3.50%	+0.70%

Volatility

VHT vs. VGHCX - Volatility Comparison

The current volatility for Vanguard Health Care ETF (VHT) is 4.92%, while Vanguard Health Care Fund Investor Shares (VGHCX) has a volatility of 5.52%. This indicates that VHT experiences smaller price fluctuations and is considered to be less risky than VGHCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VHT	VGHCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.92%	5.52%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	11.63%	11.69%	-0.06%
Volatility (1Y) Calculated over the trailing 1-year period	15.17%	15.43%	-0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.25%	18.39%	-3.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.03%	17.68%	-0.65%

VHT vs. VGHCX - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is lower than VGHCX's 0.33% expense ratio.

Dividends

VHT vs. VGHCX - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.55%, less than VGHCX's 6.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHCX Vanguard Health Care Fund Investor Shares	6.39%	6.00%	22.72%	7.17%	5.44%	8.31%	7.96%	11.82%	9.10%	7.30%	8.54%	8.16%
VHT Vanguard Health Care ETF	1.55%	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 VGHCX in my portfolio?

With a correlation of 0.96, VHT and VGHCX 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 VGHCX?

VGHCX has higher volatility (5.52%) compared to VHT (4.92%). In terms of maximum drawdown, VHT dropped -39.12% vs VGHCX's -36.93%.

Which has better risk-adjusted returns?

VGHCX currently has the higher Sharpe Ratio (1.86 vs 1.84), 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.