VB vs VGHAX
Vanguard Morningstar Small-Cap ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VB or VGHAX?
Small Cap Blend against Large Cap Growth.
VB has a lower expense ratio. VB led over 3Y, 5Y and the full window, VGHAX over 1Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VB | VGHAX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.27% |
| AUM | $79.7B | $32.8B |
| Dividend Yield | 1.21% | 6.15% |
| Holdings | 1,319 | 109 |
| YTD Price Return | +10.73%Best | +2.02% |
| 1Y Price Return | +11.75% | +16.45%Best |
| 3Y Price Return (annualized) | +14.22%Best | +0.13% |
| 5Y Price Return (annualized) | +5.75%Best | -2.38% |
| Volatility (annualized) | 19.1% | 15.3%Best |
| Max Drawdown | -28.8%Best | -32.7% |
| $10,000 over 5 years | $13,225Best | $8,865 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Jan 26, 2004 | Nov 12, 2001 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VB yields 1.21% and VGHAX 6.15% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 17, 2026 (5 years).
VB vs VGHAX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VB vs VGHAX Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VB returned +11.75% while VGHAX returned +16.45%. Year to date, VB is up 10.73% versus a gain of 2.02% for VGHAX.
Over three years, VB compounded at +14.22% per year against +0.13% for VGHAX; over five years the annualized figures are +5.75% and -2.38% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 15.3% for VGHAX. 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 -28.8% for VB and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VB charges 0.03% per year while VGHAX charges 0.27%. On a $10,000 position that is $3 vs $27 annually, a gap of $24 per year that compounds over a long holding period. On income, VB currently yields 1.21% against 6.15% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VB is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
At least 2.8% of VB's money is in holdings VGHAX also owns.
Stated as a floor: for VGHAX, our book for it covers 92.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VB and VGHAX share little of their money.
23 positions in common, counted across the 1,302 positions we hold weights for in VB and 77 in VGHAX, against full books of 1,319 and 109.
Top Shared Holdings
| Stock | Weight in VB | Weight in VGHAX | Difference |
|---|---|---|---|
| RVMDRevolution Medicines Inc | 0.45% | 1.01% | 0.56% |
| UTHRUnited Therapeutics Corp | 0.28% | 1.05% | 0.77% |
| CNCCentene | 0.19% | 1.01% | 0.82% |
| IONSIonis Pharmaceuticals Inc | 0.15% | 0.92% | 0.77% |
| INCYIncyte Corp. | 0.23% | 0.74% | 0.51% |
| MDGLMadrigal Pharmaceuticals Inc | 0.12% | 0.72% | 0.60% |
| CYTKCytokinetics Inc | 0.14% | 0.68% | 0.54% |
| BBIOBridgebio Pharma Inc_None_0 | 0.16% | 0.51% | 0.35% |
| MRNAModerna therapeutics | 0.30% | 0.36% | 0.06% |
| KYMRKymera Therapeutics Inc | 0.09% | 0.53% | 0.44% |
You are not choosing between two funds in isolation.
Whichever of VB and VGHAX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VB or VGHAX?
VB has an expense ratio of 0.03% while VGHAX charges 0.27%. VB is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, VB or VGHAX?
Over the past year VB returned +11.75% vs +16.45% for VGHAX, so VGHAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VGHAX?
VB has been the more volatile fund at 19.1% annualized versus 15.3% for VGHAX. Worst drawdown: VB -28.8% vs VGHAX -32.7%.
Should I hold both VB and VGHAX?
VB and VGHAX have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VB and VGHAX?
At least 2.8% of VB's money is in holdings VGHAX also owns. Our book for VGHAX is partial, so the real figure is this or higher. They hold 23 positions in common, counted across the 1,302 positions we hold weights for in VB and 77 in VGHAX.
Which pays a higher dividend, VB or VGHAX?
VB yields 1.21% while VGHAX yields 6.15%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VB in a taxable account?
VB is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than VB?
VB has a lower expense ratio. VB led over 3Y, 5Y and the full window, VGHAX over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.