VBR vs VGHAX
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
VBR has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.27% | |
| AUM | $37.3B | $32.8B | |
| Dividend Yield | 1.76% | 6.45% | |
| Holdings | 847 | 109 | |
| YTD Return | +14.80% | +3.72% | |
| 1Y Return | +19.71% | +18.47% | |
| 3Y Return (annualized) | +16.03% | -0.01% | |
| 5Y Return (annualized) | +9.16% | -2.90% | |
| Volatility (annualized) | 19.0% | 15.4% | |
| Max Drawdown | -64.0% | -33.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 12, 2001 |
VBR vs VGHAX Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a 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 +19.71% while VGHAX returned +18.47%. Year to date, VBR is up 14.80% versus a gain of 3.72% for VGHAX.
Over three years, VBR compounded at +16.03% per year against -0.01% for VGHAX; over five years the annualized figures are +9.16% and -2.90% respectively. Across the full 5-year window we track, VBR has the edge at +7.88% annualized vs -2.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 15.4% 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 -64.0% for VBR and -33.6% for VGHAX. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
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 6.45% for VGHAX.
Holdings Overlap
VBR and VGHAX share 9 holdings out of 913 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $22 per year of difference.
Which performed better, VBR or VGHAX?
Over the past year VBR returned +19.71% vs +18.47% for VGHAX, so VBR leads on 1-year performance. Over the longest common window we track (5 years), VBR annualized +7.88% vs -2.90% for VGHAX. Past performance does not guarantee future results.
Which is riskier, VBR or VGHAX?
VBR has been the more volatile fund at 19.0% annualized versus 15.4% for VGHAX. Worst drawdown: VBR -64.0% vs VGHAX -33.6%.
Should I hold both VBR and VGHAX?
VBR and VGHAX have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VGHAX?
VBR and VGHAX share 9 common holdings with a 1.3% weight overlap. Combined, they hold 913 unique securities.
Which pays a higher dividend, VBR or VGHAX?
VBR yields 1.76% while VGHAX yields 6.45%, so VGHAX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.