VHT vs. VGT
Compare and contrast key facts about Vanguard Health Care ETF (VHT) and Vanguard Information Technology ETF (VGT).
VHT and VGT 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. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both VHT and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VHT or VGT.
Key characteristics
| VHT | VGT | |
|---|---|---|
| YTD Return | 3.24% | 5.51% |
| 1Y Return | 7.23% | 36.46% |
| 3Y Return (Ann) | 4.04% | 12.37% |
| 5Y Return (Ann) | 10.32% | 20.09% |
| 10Y Return (Ann) | 11.03% | 20.31% |
| Sharpe Ratio | 0.59 | 1.95 |
| Daily Std Dev | 10.82% | 18.44% |
| Max Drawdown | -39.12% | -54.63% |
| Current Drawdown | -4.63% | -3.68% |
Correlation
The correlation between VHT and VGT is 0.66, 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.
Performance
VHT vs. VGT - Performance Comparison
In the year-to-date period, VHT achieves a 3.24% return, which is significantly lower than VGT's 5.51% return. Over the past 10 years, VHT has underperformed VGT with an annualized return of 11.03%, while VGT has yielded a comparatively higher 20.31% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VHT vs. VGT - Expense Ratio Comparison
Both VHT and VGT 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%.
Risk-Adjusted Performance
VHT vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Vanguard Information Technology ETF (VGT). 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.
Dividends
VHT vs. VGT - Dividend Comparison
VHT's dividend yield for the trailing twelve months is around 1.34%, more than VGT's 0.71% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VHT Vanguard Health Care ETF | 1.34% | 1.36% | 1.33% | 1.14% | 1.21% | 1.89% | 1.38% | 1.31% | 1.45% | 1.22% | 1.02% | 1.12% |
VGT Vanguard Information Technology ETF | 0.71% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
VHT vs. VGT - Drawdown Comparison
The maximum VHT drawdown since its inception was -39.12%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VHT and VGT. For additional features, visit the drawdowns tool.
Volatility
VHT vs. VGT - Volatility Comparison
The current volatility for Vanguard Health Care ETF (VHT) is 2.97%, while Vanguard Information Technology ETF (VGT) has a volatility of 6.95%. This indicates that VHT experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.