VEA vs VGHAX
Vanguard FTSE Developed Markets ETF vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.32% | |
| AUM | $230.9B | $31.8B | |
| Dividend Yield | 2.57% | 1.06% | |
| Holdings | 3,918 | 109 | |
| YTD Return | +17.17% | +2.59% | |
| 1Y Return | +28.88% | +24.45% | |
| 3Y Return (annualized) | +20.71% | -0.54% | |
| 5Y Return (annualized) | +10.20% | -2.67% | |
| Volatility (annualized) | 17.8% | 15.4% | |
| Max Drawdown | -62.9% | -33.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Nov 12, 2001 |
VEA vs VGHAX Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +28.88% while VGHAX returned +24.45%. Year to date, VEA is up 17.17% versus a gain of 2.59% for VGHAX.
Over three years, VEA compounded at +20.71% per year against -0.54% for VGHAX; over five years the annualized figures are +10.20% and -2.67% respectively. Across the full 5-year window we track, VEA has the edge at +3.18% annualized vs -2.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEA charges 0.03% per year while VGHAX charges 0.32%. On a $10,000 position that is $3 vs $32 annually, a gap of $29 per year that compounds over a long holding period. On income, VEA currently yields 2.57% against 1.06% for VGHAX.
Holdings Overlap
VEA and VGHAX share 13 holdings out of 3081 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VGHAX?
VEA has an expense ratio of 0.03% while VGHAX charges 0.32%. VEA is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, VEA or VGHAX?
Over the past year VEA returned +28.88% vs +24.45% for VGHAX, so VEA leads on 1-year performance. Over the longest common window we track (5 years), VEA annualized +3.18% vs -2.67% for VGHAX. Past performance does not guarantee future results.
Which is riskier, VEA or VGHAX?
VEA has been the more volatile fund at 17.8% annualized versus 15.4% for VGHAX. Worst drawdown: VEA -62.9% vs VGHAX -33.6%.
Should I hold both VEA and VGHAX?
VEA and VGHAX have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VGHAX?
VEA and VGHAX share 13 common holdings with a 4.0% weight overlap. Combined, they hold 3081 unique securities.
Which pays a higher dividend, VEA or VGHAX?
VEA yields 2.57% while VGHAX yields 1.06%, so VEA currently pays the higher dividend yield.
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