VHT vs. VGK

Last updated Jun 14, 2026

VHT (Vanguard Health Care ETF) and VGK (Vanguard FTSE Europe 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 VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, VHT returned 9.87%/yr vs 10.28%/yr for VGK. A 0.63 correlation means they provide meaningful diversification when combined. VHT charges 0.09%/yr vs 0.06%/yr for VGK.

Performance

VHT vs. VGK - Performance Comparison

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

Returns By Period

In the year-to-date period, VHT achieves a -0.11% return, which is significantly lower than VGK's 7.69% return. Both investments have delivered pretty close results over the past 10 years, with VHT having a 9.87% annualized return and VGK not far ahead at 10.28%.

VHT

• 1D: -0.12%
• 1M: 5.85%
• YTD: -0.11%
• 6M: 0.45%
• 1Y: 16.49%
• 3Y*: 7.19%
• 5Y*: 4.78%
• 10Y*: 9.87%

VGK

• 1D: 0.18%
• 1M: 4.46%
• YTD: 7.69%
• 6M: 9.92%
• 1Y: 19.73%
• 3Y*: 16.69%
• 5Y*: 8.50%
• 10Y*: 10.28%

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

VHT vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VGK Vanguard FTSE Europe ETF	7.69%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between VHT and VGK is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005	0.63

The correlation between VHT and VGK shifts across timeframes, from 0.50 (1 year) to 0.63 (all time), reflecting how their relationship changes across market environments.

VHT vs. VGK - Sectors Allocation Comparison

Sectors	VHT	VGK
Healthcare	100.0%	11.9%
Financial Services	0.0%	23.6%
Industrials	0.0%	19.3%
Technology	0.0%	8.2%
Basic Materials	-	5.3%
Communication Services	-	3.3%
Consumer Cyclical	-	6.8%
Consumer Defensive	-	8.4%
Energy	-	5.3%
Real Estate	-	1.5%
Utilities	-	4.7%

Return for Risk

VHT vs. VGK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VHT

VHT Risk / Return Rank: 34
VHT Sharpe Ratio Rank: 34
VHT Sortino Ratio Rank: 37
VHT Omega Ratio Rank: 32
VHT Calmar Ratio Rank: 35
VHT Martin Ratio Rank: 30

VGK

VGK Risk / Return Rank: 36
VGK Sharpe Ratio Rank: 36
VGK Sortino Ratio Rank: 36
VGK Omega Ratio Rank: 34
VGK Calmar Ratio Rank: 34
VGK Martin Ratio Rank: 39

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. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Vanguard FTSE Europe ETF (VGK). 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	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.09	1.13	-0.05
Sortino ratio: Return per unit of downside risk	1.71	1.68	+0.03
Omega ratio: Gain probability vs. loss probability	1.19	1.20	-0.01
Calmar ratio: Return relative to maximum drawdown	1.53	1.49	+0.05
Martin ratio: Return relative to average drawdown	3.81	5.52	-1.71

VHT vs. VGK - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.09, which is comparable to the VGK Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of VHT and VGK, 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. VGK - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for VHT and VGK.

Drawdown Indicators

	VHT	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-63.61%	+24.49%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-12.09%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-16.91%	-14.31%	-2.60%
Max Drawdown (5Y) Largest decline over 5 years	-17.71%	-32.74%	+15.03%
Max Drawdown (10Y) Largest decline over 10 years	-28.85%	-37.24%	+8.39%
Current Drawdown Current decline from peak	-3.28%	-0.50%	-2.78%
Average Drawdown Average peak-to-trough decline	-5.99%	-13.33%	+7.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.19%	3.27%	+0.92%

Volatility

VHT vs. VGK - Volatility Comparison

The current volatility for Vanguard Health Care ETF (VHT) is 4.88%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 5.82%. This indicates that VHT experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VHT	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.88%	5.82%	-0.94%
Volatility (6M) Calculated over the trailing 6-month period	10.46%	13.36%	-2.90%
Volatility (1Y) Calculated over the trailing 1-year period	14.70%	15.92%	-1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.01%	17.98%	-2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.97%	18.95%	-1.98%

VHT vs. VGK - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is higher than VGK's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VHT vs. VGK - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.64%, less than VGK's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGK Vanguard FTSE Europe ETF	2.76%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%
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

Can I hold both VHT and VGK in my portfolio?

VHT and VGK have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VHT or VGK?

VGK has higher volatility (5.82%) compared to VHT (4.88%). In terms of maximum drawdown, VHT dropped -39.12% vs VGK's -63.61%.

Which ETF is better, VHT or VGK?

On 10-year performance, VGK leads with 10.28% vs 9.87% for VHT. On fees, VGK is cheaper at 0.06% per year. On volatility, VHT has been the lower-risk option at 4.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VHT or VGK?

Over the 10-year period, VGK has performed better with a 10.28% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VHT or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.09% for VHT.

Which ETF pays a higher dividend yield, VHT or VGK?

VGK has the higher dividend yield at 2.76%, compared with 1.64% for VHT.

What is the main difference between VHT and VGK?

VHT is categorized as Health & Biotech Equities, while VGK is Europe Equities. VHT tracks MSCI US Investable Market Health Care 25/50 Index, while VGK tracks FTSE Developed Europe All Cap Index. Their fees differ too: 0.09% for VHT and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.13 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.