VGHAX vs VNQ
Vanguard Health Care Fund Admiral Shares vs Vanguard Real Estate ETF
Which is better, VGHAX or VNQ?
Large Cap Growth against Mid Cap Blend.
VNQ has a lower expense ratio. VGHAX led over 1Y, VNQ over 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VGHAX | VNQ |
|---|---|---|
| Expense Ratio | 0.27% | 0.13%Best |
| AUM | $32.8B | $39.3B |
| Dividend Yield | 6.15% | 3.49% |
| Holdings | 109 | 144 |
| YTD Price Return | +0.75% | +6.56%Best |
| 1Y Price Return | +12.43%Best | +1.80% |
| 3Y Price Return (annualized) | -0.65% | +4.86%Best |
| 5Y Price Return (annualized) | -2.63% | -2.48%Best |
| Volatility (annualized) | 15.3%Best | 19.2% |
| Max Drawdown | -32.7%Best | -38.8% |
| $10,000 over 5 years | $8,752 | $8,820Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Nov 12, 2001 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VGHAX yields 6.15% and VNQ 3.49% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2021 to Sep 11, 2026 (5 years).
VGHAX vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
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 an ETF from Vanguard (US). Over the past year VGHAX returned +12.43% while VNQ returned +1.80%. Year to date, VGHAX is up 0.75% versus a gain of 6.56% for VNQ.
Over three years, VGHAX compounded at -0.65% per year against +4.86% for VNQ; over five years the annualized figures are -2.63% and -2.48% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.3% 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 -32.7% for VGHAX and -38.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
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 6.15% against 3.49% for VNQ.
Structure and taxes
VGHAX is a mutual fund and VNQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 77 holdings in VGHAX and 139 in VNQ, totalling 92.5% and 99.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 77 positions we hold weights for in VGHAX and 139 in VNQ, against full books of 109 and 144.
What only one of them owns
Measured across the 77 and 139 positions we hold weights for.
VGHAX holds 55 positions VNQ does not, 70.5% of the fund.
Largest: LLY 8.83%, MRK 6.05%, JNJ 4.50%, UNH 4.41%, CVS 2.59%
You are not choosing between two funds in isolation.
Whichever of VGHAX and VNQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $14 a year on a $10,000 investment.
Which performed better, VGHAX or VNQ?
Over the past year VGHAX returned +12.43% vs +1.80% for VNQ, so VGHAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or VNQ?
VNQ has been the more volatile fund at 19.2% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -32.7% vs VNQ -38.8%.
Should I hold both VGHAX and VNQ?
VGHAX and VNQ have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGHAX or VNQ?
VGHAX yields 6.15% while VNQ yields 3.49%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VNQ in a taxable account?
VNQ is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VNQ better than VGHAX?
VNQ has a lower expense ratio. VGHAX led over 1Y, VNQ over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.