VHT vs. VOO

Last updated Jun 4, 2026

VHT (Vanguard Health Care ETF) and VOO (Vanguard S&P 500 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 VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VHT returned 9.26%/yr vs 15.56%/yr for VOO. A 0.75 correlation means they provide meaningful diversification when combined. VHT charges 0.09%/yr vs 0.03%/yr for VOO.

Performance

VHT vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care ETF (VHT) and Vanguard S&P 500 ETF (VOO). 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 lower than VOO's 10.91% return. Over the past 10 years, VHT has underperformed VOO with an annualized return of 9.26%, while VOO has yielded a comparatively higher 15.56% 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%

VOO

• 1D: -0.70%
• 1M: 5.04%
• YTD: 10.91%
• 6M: 10.93%
• 1Y: 28.04%
• 3Y*: 22.44%
• 5Y*: 13.90%
• 10Y*: 15.56%

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

VHT vs. VOO - 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%
VOO Vanguard S&P 500 ETF	10.91%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between VHT and VOO is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	0.75

Over the past year, the correlation between VHT and VOO has dropped to 0.41 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

VHT vs. VOO - Sectors Allocation Comparison

Sectors	VHT	VOO
Healthcare	100.0%	8.5%
Financial Services	0.0%	11.6%
Industrials	0.0%	8.3%
Technology	0.0%	35.7%
Basic Materials	-	1.8%
Communication Services	-	11.3%
Consumer Cyclical	-	10.2%
Consumer Defensive	-	4.9%
Energy	-	3.5%
Real Estate	-	1.9%
Utilities	-	2.4%

Return for Risk

VHT vs. VOO — 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

VOO

VOO Risk / Return Rank: 70
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 70
VOO Omega Ratio Rank: 70
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

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. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.00	2.39	-1.38
Sortino ratio: Return per unit of downside risk	1.57	3.25	-1.68
Omega ratio: Gain probability vs. loss probability	1.18	1.43	-0.25
Calmar ratio: Return relative to maximum drawdown	1.38	3.16	-1.78
Martin ratio: Return relative to average drawdown	3.47	14.73	-11.26
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. VOO - Sharpe Ratio Comparison

The current VHT Sharpe Ratio is 1.00, which is lower than the VOO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of VHT and VOO, 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	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.00	2.39	-1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.83	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.87	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.89	-0.33

Drawdowns

VHT vs. VOO - Drawdown Comparison

The maximum VHT drawdown since its inception was -39.12%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for VHT and VOO.

Drawdown Indicators

	VHT	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-33.99%	-5.13%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-8.90%	-1.50%
Max Drawdown (3Y) Largest decline over 3 years	-16.91%	-18.69%	+1.78%
Max Drawdown (5Y) Largest decline over 5 years	-17.71%	-24.52%	+6.81%
Max Drawdown (10Y) Largest decline over 10 years	-28.85%	-33.99%	+5.14%
Current Drawdown Current decline from peak	-7.05%	-0.70%	-6.35%
Average Drawdown Average peak-to-trough decline	-5.99%	-3.69%	-2.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	1.91%	+2.23%

Volatility

VHT vs. VOO - Volatility Comparison

Vanguard Health Care ETF (VHT) has a higher volatility of 4.08% compared to Vanguard S&P 500 ETF (VOO) at 2.84%. This indicates that VHT's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VHT	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	2.84%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	10.08%	8.90%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	11.80%	+2.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.96%	16.81%	-1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.94%	18.01%	-1.07%

VHT vs. VOO - Expense Ratio Comparison

VHT has a 0.09% expense ratio, which is higher than VOO's 0.03% 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. VOO - Dividend Comparison

VHT's dividend yield for the trailing twelve months is around 1.71%, more than VOO's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VOO Vanguard S&P 500 ETF	1.03%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VHT and VOO in my portfolio?

VHT and VOO have a correlation of 0.41, 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 VOO?

VHT has higher volatility (4.08%) compared to VOO (2.84%). In terms of maximum drawdown, VHT dropped -39.12% vs VOO's -33.99%.

Which ETF is better, VHT or VOO?

On 10-year performance, VOO leads with 15.56% vs 9.26% for VHT. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VHT or VOO?

Over the 10-year period, VOO has performed better with a 15.56% return vs 9.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VHT or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.09% for VHT.

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

VHT has the higher dividend yield at 1.71%, compared with 1.03% for VOO.

What is the main difference between VHT and VOO?

VHT is categorized as Health & Biotech Equities, while VOO is S&P 500. VHT tracks MSCI US Investable Market Health Care 25/50 Index, while VOO tracks S&P 500 Index. Their fees differ too: 0.09% for VHT and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.39 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.