VGHAX vs VOE
Vanguard Health Care Fund Admiral Shares vs Vanguard Morningstar Mid-Cap Value ETF
Which is better, VGHAX or VOE?
Large Cap Growth against Mid Cap Value.
VOE has a lower expense ratio. VOE led over 1Y, 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 | VOE |
|---|---|---|
| Expense Ratio | 0.27% | 0.05%Best |
| AUM | $32.8B | $24.2B |
| Dividend Yield | 6.15% | 1.80% |
| Holdings | 109 | 174 |
| YTD Price Return | -0.59% | +10.60%Best |
| 1Y Price Return | +7.02% | +13.60%Best |
| 3Y Price Return (annualized) | +0.18% | +15.78%Best |
| 5Y Price Return (annualized) | -2.25% | +6.97%Best |
| Volatility (annualized) | 15.3%Best | 16.4% |
| Max Drawdown | -32.7% | -20.5%Best |
| $10,000 over 5 years | $8,924 | $14,006Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Value |
| Inception | Nov 12, 2001 | Aug 17, 2006 |
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 VOE 1.80% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Oct 1, 2026 (5 years).
VGHAX vs VOE 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 VOE Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Mid-Cap Value ETF (VOE) is an ETF from Vanguard (US). Over the past year VGHAX returned +7.02% while VOE returned +13.60%. Year to date, VGHAX is down 0.59% versus a gain of 10.60% for VOE.
Over three years, VGHAX compounded at +0.18% per year against +15.78% for VOE; over five years the annualized figures are -2.25% and +6.97% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -20.5% for VOE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VOE charges 0.05%. On a $10,000 position that is $27 vs $5 annually, a gap of $22 per year that compounds over a long holding period. On income, VGHAX currently yields 6.15% against 1.80% for VOE.
Structure and taxes
VGHAX is a mutual fund and VOE 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
At least 3.5% of VOE's money is in holdings VGHAX also owns.
Stated as a floor: for VGHAX, our book for it covers 92.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VOE and VGHAX share little of their money.
6 positions in common, counted across the 77 positions we hold weights for in VGHAX and 171 in VOE, against full books of 109 and 174.
You are not choosing between two funds in isolation.
Whichever of VGHAX and VOE 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 VOE?
VGHAX has an expense ratio of 0.27% while VOE charges 0.05%. VOE is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, VGHAX or VOE?
Over the past year VGHAX returned +7.02% vs +13.60% for VOE, so VOE leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or VOE?
VOE has been the more volatile fund at 16.4% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -32.7% vs VOE -20.5%.
Should I hold both VGHAX and VOE?
VGHAX and VOE have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VGHAX and VOE?
At least 3.5% of VOE's money is in holdings VGHAX also owns. Our book for VGHAX is partial, so the real figure is this or higher. They hold 6 positions in common, counted across the 77 positions we hold weights for in VGHAX and 171 in VOE.
Which pays a higher dividend, VGHAX or VOE?
VGHAX yields 6.15% while VOE yields 1.80%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VOE in a taxable account?
VOE 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 VOE better than VGHAX?
VOE has a lower expense ratio. VOE led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.