Category Review
Health care funds trail the S&P 500 this year
Vanguard Health Care ETF
$316.37−4.30 (−1.34%)
- 0.09%
- $22.0B
- +23.1%
- 1.44%
- 0.2M sh
- $320.70
- low $263.00high $330.75
The ETF.net VHT Grade
A
Score 77 out of 100
- 3 of 25
Score 77 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.A92 out of 100Rank 3 of 25Mission
Whether the fund did what it promised, tested against its stated mandate.A81 out of 100Rank 2 of 11Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.A80 out of 100Rank 1 of 24Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.B57 out of 100Rank 10 of 25Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.B58 out of 100Rank 13 of 25Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A92 out of 100Rank 1 of 25
Our read on VHT
AThe whole US health care sector in one ticket: roughly 400 stocks, an index that reaches well past the megacaps, and a nine-basis-point fee. Trading since 2004, it is one of the category's originals.
The fund seeks to track a benchmark index measuring the investment return of health care stocks.
Why people hold it
- Costs 0.09% a year while the typical fund in its health care peer group charges 0.50%. Same sector, a fraction of the toll.
- Roughly 400 holdings drawn from an investable-market index, so mid and small health care companies count too, not just the sector's giants.workplace.vanguard.com
- Two decades old, now a multi-billion-dollar fund, moderately traded, and it has hugged its benchmark closely. Pays out quarterly.
- On cost, tracking and tradability together, it stands among the strongest builds in a 24-fund health care cohort.
Worth knowing
- FHLC and XLV each shave a basis point off the fee. If the fee line is your only tiebreaker, VHT is not the final word.
- One sector, one news cycle. Drug pricing rules, patent expirations and regulatory decisions can move the entire basket at once.personal.vanguard.com
- Cap-weighted with a 25/50 diversification rule, so no single name can dominate outright, but the largest pharma and insurer positions still steer most of the ride.personal.vanguard.com
VHT Holdings
- Stocks
- 417
- 52%
- LLY
Sectors
- Health Care99.9%
- Financials0.0%
- Industrials0.0%
- Technology0.0%
Geography
- United States100.00%
VHT Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
VHT$12,308
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | VHT |
|---|---|
| Year to date | +12.5% |
| 1 month | +3.5% |
| 3 months | +6.0% |
| 1 year | +23.1% |
| 3 years | +12.7% |
| 5 years | +7.2% |
| 10 years | +11.2% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | VHT |
|---|---|---|
| 2026 YTD | +12.5% | |
| 2025 | +15.5% | |
| 2024 | +2.7% | |
| 2023 | +2.5% | |
| 2022 | −5.6% | |
| 2021 | +20.6% | |
| 2020 | +18.3% |
VHT in the news
VHT Dividends
- 1.44%
- $4.61
- $0.97 per share
- Quarterly
Distribution history
VHT Risk
- 14.2%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.56
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −17.7%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.59
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
VHT Cost
0.09%
VHT0.09%
- The middle half of Health Care (Broad) funds
- Median 0.50%
2 of the 25 Health Care (Broad) funds charge less.
Other funds in Health Care (Broad)
- AFHLCFidelity MSCI Health Care Index ETFExpense ratio 0.08%1 year return +23.1%
- AXLVState Street Health Care Select Sector SPDR ETFExpense ratio 0.08%1 year return +23.0%
- AXHSState Street SPDR S&P Health Care Services ETFExpense ratio 0.35%1 year return +37.8%
- AIYHiShares U.S. Healthcare ETFExpense ratio 0.37%1 year return +22.7%
- BIXJiShares Global Healthcare ETFExpense ratio 0.38%1 year return +15.9%