VGHAX vs VNQ
Vanguard Health Care Fund Admiral Shares vs Vanguard Real Estate ETF
Quick Verdict
VNQ has a lower expense ratio. VGHAX delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.13% | |
| AUM | $32.8B | $39.3B | |
| Dividend Yield | 6.45% | 3.49% | |
| Holdings | 109 | 144 | |
| YTD Return | +6.28% | +13.46% | |
| 1Y Return | +23.01% | +13.14% | |
| 3Y Return (annualized) | +1.17% | +11.55% | |
| 5Y Return (annualized) | -2.22% | +2.33% | |
| Volatility (annualized) | 15.6% | 21.4% | |
| Max Drawdown | -33.6% | -75.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Sep 23, 2004 |
VGHAX vs VNQ Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year VGHAX returned +23.01% while VNQ returned +13.14%. Year to date, VGHAX is up 6.28% versus a gain of 13.46% for VNQ.
Over three years, VGHAX compounded at +1.17% per year against +11.55% for VNQ; over five years the annualized figures are -2.22% and +2.33% respectively. Across the full 5-year window we track, VNQ has the edge at +4.13% annualized vs -2.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 15.6% 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 -33.6% for VGHAX and -75.8% for VNQ. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VNQ charges 0.13%. On a $10,000 position that is $27 vs $13 annually, a gap of $14 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 3.49% for VNQ.
Holdings Overlap
VGHAX and VNQ share 0 holdings out of 230 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 VNQ?
VGHAX has an expense ratio of 0.27% while VNQ charges 0.13%. VNQ is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, VGHAX or VNQ?
Over the past year VGHAX returned +23.01% vs +13.14% for VNQ, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.22% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, VGHAX or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 15.6% for VGHAX. Worst drawdown: VGHAX -33.6% vs VNQ -75.8%.
Should I hold both VGHAX and VNQ?
VGHAX and VNQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VNQ?
VGHAX and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 230 unique securities.
Which pays a higher dividend, VGHAX or VNQ?
VGHAX yields 6.45% while VNQ yields 3.49%, so VGHAX currently pays the higher dividend yield.
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