VGHAX vs VTEB
Vanguard Health Care Fund Admiral Shares vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VGHAX delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $31.8B | $46.0B | |
| Dividend Yield | 1.06% | 3.34% | |
| Holdings | 109 | 9,952 | |
| YTD Return | +2.40% | +0.59% | |
| 1Y Return | +25.63% | +4.98% | |
| 3Y Return (annualized) | -0.60% | +3.13% | |
| 5Y Return (annualized) | -2.58% | +0.63% | |
| Volatility (annualized) | 15.3% | 4.9% | |
| Max Drawdown | -33.6% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Nov 12, 2001 | Aug 21, 2015 |
VGHAX vs VTEB Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VGHAX returned +25.63% while VTEB returned +4.98%. Year to date, VGHAX is up 2.40% versus a gain of 0.59% for VTEB.
Over three years, VGHAX compounded at -0.60% per year against +3.13% for VTEB; over five years the annualized figures are -2.58% and +0.63% respectively. Across the full 5-year window we track, VTEB has the edge at +1.27% annualized vs -2.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.9% for VTEB. 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 -17.0% for VTEB. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.32% per year while VTEB charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, VGHAX currently yields 1.06% against 3.34% for VTEB.
Holdings Overlap
VGHAX and VTEB share 0 holdings out of 3619 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 VTEB?
VGHAX has an expense ratio of 0.32% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, VGHAX or VTEB?
Over the past year VGHAX returned +25.63% vs +4.98% for VTEB, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.58% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VGHAX or VTEB?
VGHAX has been the more volatile fund at 15.3% annualized versus 4.9% for VTEB. Worst drawdown: VGHAX -33.6% vs VTEB -17.0%.
Should I hold both VGHAX and VTEB?
VGHAX and VTEB have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VTEB?
VGHAX and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3619 unique securities.
Which pays a higher dividend, VGHAX or VTEB?
VGHAX yields 1.06% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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