VHT vs. VGHCX

Last updated Jun 4, 2026

VHT (Vanguard Health Care ETF) and VGHCX (Vanguard Health Care Fund Investor Shares) are both Health & Biotech Equities funds from Vanguard. Over the past 10 years, VHT returned 9.26%/yr vs 8.79%/yr for VGHCX. Their correlation of 0.93 suggests significant overlap in exposure. VHT charges 0.09%/yr vs 0.30%/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 -4.02% return, which is significantly higher than VGHCX's -4.67% return. Over the past 10 years, VHT has outperformed VGHCX with an annualized return of 9.26%, while VGHCX has yielded a comparatively lower 8.79% annualized return.

VHT

• 1D: 0.84%
• 1M: 1.45%
• YTD: -4.02%
• 6M: -4.15%
• 1Y: 14.34%
• 3Y*: 6.14%
• 5Y*: 4.51%
• 10Y*: 9.26%

VGHCX

• 1D: -1.56%
• 1M: -1.40%
• YTD: -4.67%
• 6M: -4.29%
• 1Y: 16.18%
• 3Y*: 8.30%
• 5Y*: 7.16%
• 10Y*: 8.79%

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

VHT vs. VGHCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VHT Vanguard Health Care ETF	-4.02%	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	-4.67%	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 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.93

The correlation between VHT and VGHCX has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

VHT vs. VGHCX - Sectors Allocation Comparison

Sectors	VHT	VGHCX
Healthcare	100.0%	97.8%
Financial Services	0.0%	0.0%
Industrials	0.0%	-
Technology	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 risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VHT

VHT Risk / Return Rank: 27
VHT Sharpe Ratio Rank: 27
VHT Sortino Ratio Rank: 28
VHT Omega Ratio Rank: 26
VHT Calmar Ratio Rank: 28
VHT Martin Ratio Rank: 25

VGHCX

VGHCX Risk / Return Rank: 17
VGHCX Sharpe Ratio Rank: 15
VGHCX Sortino Ratio Rank: 16
VGHCX Omega Ratio Rank: 14
VGHCX Calmar Ratio Rank: 22
VGHCX Martin Ratio Rank: 16

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. 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.

	VHT	VGHCX	Difference
Sharpe ratio: Return per unit of total volatility	1.00	1.08	-0.07
Sortino ratio: Return per unit of downside risk	1.57	1.67	-0.10
Omega ratio: Gain probability vs. loss probability	1.18	1.19	-0.01
Calmar ratio: Return relative to maximum drawdown	1.38	1.73	-0.34
Martin ratio: Return relative to average drawdown	3.47	4.60	-1.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VHT vs. VGHCX - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.00, which is comparable to the VGHCX Sharpe Ratio of 1.08. 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.

Sharpe Ratios by Period

	VHT	VGHCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.00	1.08	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.40	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.50	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.92	-0.37

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	-7.05%	-7.61%	+0.56%
Average Drawdown Average peak-to-trough decline	-5.99%	-5.25%	-0.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	3.44%	+0.70%

Volatility

VHT vs. VGHCX - Volatility Comparison

Vanguard Health Care ETF (VHT) has a higher volatility of 4.08% compared to Vanguard Health Care Fund Investor Shares (VGHCX) at 3.79%. This indicates that VHT's price experiences larger fluctuations and is considered to be riskier 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	4.08%	3.79%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	10.08%	10.35%	-0.27%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	14.75%	-0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.96%	18.21%	-3.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.94%	17.64%	-0.70%

VHT vs. VGHCX - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is lower than VGHCX's 0.30% expense ratio.

Dividends

VHT vs. VGHCX - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.71%, less than VGHCX's 6.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHCX Vanguard Health Care Fund Investor Shares	6.93%	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	1.71%	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 0.95, 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?

VHT has higher volatility (4.08%) compared to VGHCX (3.79%). 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 (1.08 vs 1.00), 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.