Average Daily Volume
279.7K
Fund Overview
The Vanguard Health Care ETF (VHT) provides investors with exposure to a diversified portfolio of U.S. healthcare stocks. This ETF seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index, which includes large, mid, and small-cap stocks across the healthcare sector. VHT holds a broad range of companies involved in pharmaceuticals, biotechnology, medical devices, healthcare services, and managed healthcare. With its low expense ratio and diversified holdings, VHT is a popular choice for investors looking to gain exposure to the healthcare industry without picking individual stocks. The fund is passively managed, aiming to replicate the index's performance rather than outperform it, making it a cost-effective option for long-term investors.
- Asset Class
-
Equity
- Industry
-
Broad Healthcare
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.39 %
- Currency Hedged
-
No
- Portfolio Turnover
-
4 %
- Dividend Date
-
Why Invest in the VHT ETF?
Potential Benefits
- Diversified exposure to the U.S. healthcare sector, including pharmaceuticals, biotech, and medical devices.
- Low expense ratio compared to actively managed healthcare funds, reducing cost drag on returns.
- Passive management strategy aims to closely track the performance of a broad healthcare index.
- Includes large, mid, and small-cap stocks, providing comprehensive sector coverage.
- Strong historical performance driven by long-term growth in healthcare spending and innovation.
Potential Risks
- Sector concentration risk—performance heavily tied to the healthcare industry's fortunes.
- Regulatory risks, as healthcare companies face government policies affecting drug pricing and insurance.
- Biotech and pharmaceutical firms may experience volatility due to clinical trial results or patent expirations.
- Economic downturns can impact healthcare spending, affecting sector performance.
- Competition from new entrants and generic drugs can pressure profitability.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.2%
|
+2.9%
|
-7.5%
|
0.0%
|
+2.6%
|
+7.3%
|
+1.9%
|
+5.0%
|
-0.9%
|
-1.3%
|
-
|
-
|
| 2025 |
+6.7%
|
+0.4%
|
-2.3%
|
-3.3%
|
-4.7%
|
+2.3%
|
-2.8%
|
+5.6%
|
+2.2%
|
+4.2%
|
+8.9%
|
-1.7%
|
| 2024 |
+2.4%
|
+3.4%
|
+2.2%
|
-5.4%
|
+2.5%
|
+1.7%
|
+3.3%
|
+4.9%
|
-1.6%
|
-4.4%
|
+0.9%
|
-6.5%
|
| 2023 |
-0.8%
|
-4.6%
|
+1.9%
|
+3.1%
|
-4.0%
|
+4.2%
|
+1.0%
|
-1.2%
|
-3.5%
|
-4.0%
|
+5.7%
|
+5.5%
|
| 2022 |
-7.9%
|
-1.0%
|
+5.0%
|
-5.9%
|
+1.0%
|
-2.3%
|
+3.9%
|
-5.4%
|
-3.0%
|
+8.6%
|
+4.7%
|
-2.1%
|
| 2021 |
+2.4%
|
-1.9%
|
+2.1%
|
+4.1%
|
+0.7%
|
+3.3%
|
+3.8%
|
+2.4%
|
-5.5%
|
+4.6%
|
-4.0%
|
+7.7%
|
| 2020 |
-2.5%
|
-6.2%
|
-5.0%
|
+13.4%
|
+4.4%
|
-1.6%
|
+5.2%
|
+2.4%
|
-1.4%
|
-2.9%
|
+8.8%
|
+4.2%
|
| 2019 |
+5.9%
|
+1.6%
|
+0.4%
|
-2.7%
|
-2.7%
|
+7.2%
|
-1.3%
|
-1.2%
|
-0.8%
|
+4.8%
|
+6.1%
|
+3.2%
|
| 2018 |
+6.8%
|
-4.2%
|
-2.4%
|
+0.9%
|
+1.5%
|
+1.6%
|
+6.0%
|
+5.0%
|
+2.2%
|
-7.7%
|
+6.5%
|
-9.1%
|
| 2017 |
+2.7%
|
+6.4%
|
-0.2%
|
+1.7%
|
+0.5%
|
+5.0%
|
+0.6%
|
+1.9%
|
+1.2%
|
-0.7%
|
+2.9%
|
-0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
LLY
|
ELI LILLY AND CO |
12.0 % |
|
UNH
|
UNITEDHEALTH GROUP INC |
7.0 % |
|
ABBV
|
ABBVIE INC |
5.4 % |
|
JNJ
|
JOHNSON & JOHNSON |
4.8 % |
|
ABT
|
ABBOTT LABORATORIES |
3.9 % |
|
MRK
|
MERCK & CO INC |
3.6 % |
|
ISRG
|
INTUITIVE SURGICAL INC |
3.3 % |
|
TMO
|
THERMO FISHER SCIENTIFIC INC |
3.3 % |
|
AMGN
|
AMGEN INC |
2.7 % |
|
BSX
|
BOSTON SCIENTIFIC CORP |
2.5 % |
Top 10 holdings shown, out of 409 total holdings.
Related ETFs: VHT vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VHT seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index, which includes a broad range of U.S. healthcare stocks. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund holds common stocks across pharmaceuticals, biotechnology, medical equipment, and healthcare services, providing diversified exposure. VHT is passively managed, with periodic rebalancing to align with index changes, typically occurring quarterly. This strategy minimizes turnover and trading costs while maintaining accurate index replication.
Frequently Asked Questions
What types of companies are included in VHT?
VHT holds a diversified mix of healthcare companies, including pharmaceuticals, biotechnology firms, medical device manufacturers, and healthcare service providers.
How does VHT differ from a biotech-focused ETF like IBB?
VHT provides broader exposure across the entire healthcare sector, while IBB concentrates solely on biotechnology stocks, which tend to be more volatile.
Is VHT a good defensive investment during economic downturns?
Healthcare stocks, including those in VHT, are often considered defensive due to consistent demand for medical services, but they are not immune to broader market declines.
What is VHT's expense ratio?
VHT has a low expense ratio of 0.10%, making it a cost-effective way to invest in the healthcare sector.
Does VHT pay dividends?
Yes, VHT pays dividends quarterly, as many healthcare companies in its portfolio distribute dividends to shareholders.
Industry Overview
The healthcare sector, represented by ETFs like Vanguard Health Care ETF (VHT), is a critical component of the global economy, driven by demographic trends, technological advancements, and increasing healthcare spending. Investing in healthcare offers exposure to industries such as pharmaceuticals, biotechnology, medical devices, and healthcare services, which tend to be resilient during economic downturns due to the essential nature of healthcare services. The sector benefits from long-term tailwinds like aging populations and rising demand for innovative treatments. However, it also faces regulatory scrutiny and pricing pressures, making diversification through an ETF like VHT an attractive option for investors seeking balanced exposure.
Alternative Comparison
Compared to peers like XLV (Health Care Select Sector SPDR Fund), VHT offers broader exposure by including small and mid-cap stocks, whereas XLV focuses on large-cap companies. VHT's expense ratio is competitive, though slightly higher than XLV's. Another peer, IBB (iShares Biotechnology ETF), concentrates solely on biotech, making it more volatile than VHT's diversified approach. Unlike some actively managed healthcare funds, VHT's passive strategy ensures lower fees and consistent index tracking, appealing to cost-conscious investors.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. With a reputation for investor-friendly practices and a focus on long-term growth, Vanguard's ETFs, including VHT, are designed to provide broad market exposure at minimal cost. The firm's passive investment approach emphasizes tracking benchmark indices rather than active stock selection, aligning with its mission to offer reliable, low-fee investment solutions.
Conclusion
Vanguard Health Care ETF (VHT) is a well-rounded option for investors seeking diversified exposure to the U.S. healthcare sector. Its low-cost, passive management approach, combined with broad industry coverage, makes it suitable for both long-term growth and defensive positioning. While sector-specific risks exist, VHT's inclusion of large, mid, and small-cap stocks provides balanced participation in healthcare's growth potential.
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