IHF vs VOO

Quick Verdict

VOO has a lower expense ratio. IHF delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: IHFMore Diversified: VOO

Side-by-Side Comparison

MetricIHFVOOWinner
Expense Ratio0.38%0.03%
AUM$1.2B$979.0B
Dividend Yield0.95%1.09%
Holdings64509
YTD Return+18.92%+13.79%
1Y Return+36.12%+23.01%
3Y Return (annualized)+4.20%+21.78%
5Y Return (annualized)+2.55%+13.39%
Volatility (annualized)19.5%14.1%
Max Drawdown-58.8%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 1, 2006Sep 7, 2010

IHF vs VOO Performance

iShares US Health Care Providers ETF (IHF) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IHF returned +36.12% while VOO returned +23.01%. Year to date, IHF is up 18.92% versus a gain of 13.79% for VOO.

Over three years, IHF compounded at +4.20% per year against +21.78% for VOO; over five years the annualized figures are +2.55% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +9.36%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IHF has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -58.8% for IHF and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IHF charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, IHF currently yields 0.95% against 1.09% for VOO.

Holdings Overlap

1.4%overlap

IHF and VOO share 12 holdings out of 554 unique holdings combined, representing a 1.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IHFWeight in VOODifference
UNH21.48%0.59%20.89%
CVS14.22%0.20%14.02%
ANTM7.34%0.13%7.21%
HCAProProPro
HUMProProPro
CNCProProPro
VEEVProProPro
CIProProPro
DGXProProPro
LHProProPro
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Frequently Asked Questions

Which is cheaper, IHF or VOO?

IHF has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, IHF or VOO?

Over the past year IHF returned +36.12% vs +23.01% for VOO, so IHF leads on 1-year performance. Over the longest common window we track (16 years), IHF annualized +9.36% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, IHF or VOO?

IHF has been the more volatile fund at 19.5% annualized versus 14.1% for VOO. Worst drawdown: IHF -58.8% vs VOO -34.3%.

Should I hold both IHF and VOO?

IHF and VOO have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IHF and VOO?

IHF and VOO share 12 common holdings with a 1.4% weight overlap. Combined, they hold 554 unique securities.

Which pays a higher dividend, IHF or VOO?

IHF yields 0.95% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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