VGHAX vs VUG
Vanguard Health Care Fund Admiral Shares vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. VGHAX delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $31.8B | $223.2B | |
| Dividend Yield | 1.06% | 0.47% | |
| Holdings | 109 | 155 | |
| YTD Return | +2.40% | +9.91% | |
| 1Y Return | +25.63% | +15.67% | |
| 3Y Return (annualized) | -0.60% | +24.16% | |
| 5Y Return (annualized) | -2.58% | +12.94% | |
| Volatility (annualized) | 15.3% | 16.5% | |
| Max Drawdown | -33.6% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Jan 26, 2004 |
VGHAX vs VUG Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VGHAX returned +25.63% while VUG returned +15.67%. Year to date, VGHAX is up 2.40% versus a gain of 9.91% for VUG.
Over three years, VGHAX compounded at -0.60% per year against +24.16% for VUG; over five years the annualized figures are -2.58% and +12.94% respectively. Across the full 5-year window we track, VUG has the edge at +11.27% annualized vs -2.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -33.6% for VGHAX and -51.4% for VUG. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.32% per year while VUG 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 0.47% for VUG.
Holdings Overlap
VGHAX and VUG share 7 holdings out of 225 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or VUG?
VGHAX has an expense ratio of 0.32% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, VGHAX or VUG?
Over the past year VGHAX returned +25.63% vs +15.67% for VUG, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.58% vs +11.27% for VUG. Past performance does not guarantee future results.
Which is riskier, VGHAX or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -33.6% vs VUG -51.4%.
Should I hold both VGHAX and VUG?
VGHAX and VUG have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VUG?
VGHAX and VUG share 7 common holdings with a 4.0% weight overlap. Combined, they hold 225 unique securities.
Which pays a higher dividend, VGHAX or VUG?
VGHAX yields 1.06% while VUG yields 0.47%, so VGHAX currently pays the higher dividend yield.
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