VGHAX vs VIG
Vanguard Health Care Fund Admiral Shares vs Vanguard Dividend Appreciation ETF
Quick Verdict
VIG has a lower expense ratio. VGHAX delivered stronger 1-year returns. VIG offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.04% | |
| AUM | $31.8B | $110.2B | |
| Dividend Yield | 1.06% | 1.79% | |
| Holdings | 109 | 335 | |
| YTD Return | +2.59% | +12.71% | |
| 1Y Return | +24.45% | +19.37% | |
| 3Y Return (annualized) | -0.54% | +16.71% | |
| 5Y Return (annualized) | -2.67% | +10.78% | |
| Volatility (annualized) | 15.4% | 13.3% | |
| Max Drawdown | -33.6% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Apr 21, 2006 |
VGHAX vs VIG Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VGHAX returned +24.45% while VIG returned +19.37%. Year to date, VGHAX is up 2.59% versus a gain of 12.71% for VIG.
Over three years, VGHAX compounded at -0.54% per year against +16.71% for VIG; over five years the annualized figures are -2.67% and +10.78% respectively. Across the full 5-year window we track, VIG has the edge at +8.71% annualized vs -2.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 13.3% for VIG. 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 -48.2% for VIG. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.32% per year while VIG charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, VGHAX currently yields 1.06% against 1.79% for VIG.
Holdings Overlap
VGHAX and VIG share 14 holdings out of 403 unique holdings combined, representing a 14.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or VIG?
VGHAX has an expense ratio of 0.32% while VIG charges 0.04%. VIG is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, VGHAX or VIG?
Over the past year VGHAX returned +24.45% vs +19.37% for VIG, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.67% vs +8.71% for VIG. Past performance does not guarantee future results.
Which is riskier, VGHAX or VIG?
VGHAX has been the more volatile fund at 15.4% annualized versus 13.3% for VIG. Worst drawdown: VGHAX -33.6% vs VIG -48.2%.
Should I hold both VGHAX and VIG?
VGHAX and VIG have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VIG?
VGHAX and VIG share 14 common holdings with a 14.4% weight overlap. Combined, they hold 403 unique securities.
Which pays a higher dividend, VGHAX or VIG?
VGHAX yields 1.06% while VIG yields 1.79%, so VIG currently pays the higher dividend yield.
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