VGHAX vs VGSH
Vanguard Health Care Fund Admiral Shares vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VGHAX delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.03% | |
| AUM | $32.8B | $34.7B | |
| Dividend Yield | 6.45% | 3.85% | |
| Holdings | 109 | 94 | |
| YTD Return | +5.03% | +1.11% | |
| 1Y Return | +21.40% | +2.94% | |
| 3Y Return (annualized) | +0.65% | +4.40% | |
| 5Y Return (annualized) | -2.45% | +1.96% | |
| Volatility (annualized) | 15.5% | 1.4% | |
| Max Drawdown | -33.6% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Nov 12, 2001 | Nov 19, 2009 |
VGHAX vs VGSH Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VGHAX returned +21.40% while VGSH returned +2.94%. Year to date, VGHAX is up 5.03% versus a gain of 1.11% for VGSH.
Over three years, VGHAX compounded at +0.65% per year against +4.40% for VGSH; over five years the annualized figures are -2.45% and +1.96% respectively. Across the full 5-year window we track, VGSH has the edge at +0.73% annualized vs -2.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 1.4% for VGSH. 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 -33.6% for VGHAX and -6.7% for VGSH. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VGSH charges 0.03%. On a $10,000 position that is $27 vs $3 annually, a gap of $24 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 3.85% for VGSH.
Holdings Overlap
VGHAX and VGSH share 0 holdings out of 102 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or VGSH?
VGHAX has an expense ratio of 0.27% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, VGHAX or VGSH?
Over the past year VGHAX returned +21.40% vs +2.94% for VGSH, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.45% vs +0.73% for VGSH. Past performance does not guarantee future results.
Which is riskier, VGHAX or VGSH?
VGHAX has been the more volatile fund at 15.5% annualized versus 1.4% for VGSH. Worst drawdown: VGHAX -33.6% vs VGSH -6.7%.
Should I hold both VGHAX and VGSH?
VGHAX and VGSH have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VGSH?
VGHAX and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, VGHAX or VGSH?
VGHAX yields 6.45% while VGSH yields 3.85%, so VGHAX currently pays the higher dividend yield.
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