VGHAX vs VWO
Vanguard Health Care Fund Admiral Shares vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. VGHAX delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.06% | |
| AUM | $32.8B | $122.0B | |
| Dividend Yield | 6.45% | 2.39% | |
| Holdings | 109 | 6,334 | |
| YTD Return | +6.28% | +10.18% | |
| 1Y Return | +23.01% | +20.99% | |
| 3Y Return (annualized) | +1.17% | +18.45% | |
| 5Y Return (annualized) | -2.22% | +7.14% | |
| Volatility (annualized) | 15.6% | 20.1% | |
| Max Drawdown | -33.6% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Mar 4, 2005 |
VGHAX vs VWO Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VGHAX returned +23.01% while VWO returned +20.99%. Year to date, VGHAX is up 6.28% versus a gain of 10.18% for VWO.
Over three years, VGHAX compounded at +1.17% per year against +18.45% for VWO; over five years the annualized figures are -2.22% and +7.14% respectively. Across the full 5-year window we track, VWO has the edge at +4.98% annualized vs -2.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VWO charges 0.06%. On a $10,000 position that is $27 vs $6 annually, a gap of $21 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 2.39% for VWO.
Holdings Overlap
VGHAX and VWO share 2 holdings out of 4068 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 VWO?
VGHAX has an expense ratio of 0.27% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, VGHAX or VWO?
Over the past year VGHAX returned +23.01% vs +20.99% for VWO, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.22% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VGHAX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 15.6% for VGHAX. Worst drawdown: VGHAX -33.6% vs VWO -68.3%.
Should I hold both VGHAX and VWO?
VGHAX and VWO have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VWO?
VGHAX and VWO share 2 common holdings with a 0.0% weight overlap. Combined, they hold 4068 unique securities.
Which pays a higher dividend, VGHAX or VWO?
VGHAX yields 6.45% while VWO yields 2.39%, so VGHAX currently pays the higher dividend yield.
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