VBR vs VGHAX
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VBR or VGHAX?
Small Cap Value against Large Cap Growth.
VBR has a lower expense ratio. VBR 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 | VBR | VGHAX |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.27% |
| AUM | $37.3B | $32.8B |
| Dividend Yield | 1.76% | 6.15% |
| Holdings | 847 | 109 |
| YTD Price Return | +11.34%Best | +2.42% |
| 1Y Price Return | +13.61% | +16.38%Best |
| 3Y Price Return (annualized) | +14.37%Best | +0.77% |
| 5Y Price Return (annualized) | +7.16%Best | -2.51% |
| Volatility (annualized) | 18.7% | 15.3%Best |
| Max Drawdown | -25.1%Best | -32.7% |
| $10,000 over 5 years | $14,131Best | $8,806 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | 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. VBR yields 1.76% and VGHAX 6.15% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 23, 2021 to Sep 21, 2026 (5 years).
VBR 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.
VBR vs VGHAX Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) 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 VBR returned +13.61% while VGHAX returned +16.38%. Year to date, VBR is up 11.34% versus a gain of 2.42% for VGHAX.
Over three years, VBR compounded at +14.37% per year against +0.77% for VGHAX; over five years the annualized figures are +7.16% and -2.51% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -25.1% for VBR 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 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBR charges 0.05% per year while VGHAX charges 0.27%. On a $10,000 position that is $5 vs $27 annually, a gap of $22 per year that compounds over a long holding period. On income, VBR currently yields 1.76% against 6.15% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VBR 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 1.5% of VBR'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.
VBR and VGHAX share little of their money.
7 positions in common, counted across the 836 positions we hold weights for in VBR and 77 in VGHAX, against full books of 847 and 109.
Top Shared Holdings
| Stock | Weight in VBR | Weight in VGHAX | Difference |
|---|---|---|---|
| CNCCentene | 0.34% | 1.01% | 0.67% |
| UTHRUnited Therapeutics Corp | 0.25% | 1.05% | 0.80% |
| MRNAModerna therapeutics | 0.53% | 0.36% | 0.17% |
| CGONCg Oncology Inc | 0.06% | 0.52% | 0.46% |
| EHCEmcompass Health Corporation | 0.21% | 0.37% | 0.16% |
| HTFLHeartflow, Inc. | 0.05% | 0.44% | 0.39% |
| ACHCAcadia Healthcare Co., Inc. | 0.05% | 0.23% | 0.18% |
You are not choosing between two funds in isolation.
Whichever of VBR 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, VBR or VGHAX?
VBR has an expense ratio of 0.05% while VGHAX charges 0.27%. VBR is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, VBR or VGHAX?
Over the past year VBR returned +13.61% vs +16.38% 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, VBR or VGHAX?
VBR has been the more volatile fund at 18.7% annualized versus 15.3% for VGHAX. Worst drawdown: VBR -25.1% vs VGHAX -32.7%.
Should I hold both VBR and VGHAX?
VBR and VGHAX have a monthly-return correlation of 0.58, 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 VBR and VGHAX?
At least 1.5% of VBR's money is in holdings VGHAX also owns. Our book for VGHAX is partial, so the real figure is this or higher. They hold 7 positions in common, counted across the 836 positions we hold weights for in VBR and 77 in VGHAX.
Which pays a higher dividend, VBR or VGHAX?
VBR yields 1.76% while VGHAX yields 6.15%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VBR in a taxable account?
VBR 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 VBR?
VBR has a lower expense ratio. VBR 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.