VGHAX vs VYM
Vanguard Health Care Fund Admiral Shares vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.04% | |
| AUM | $32.8B | $81.6B | |
| Dividend Yield | 6.45% | 2.24% | |
| Holdings | 109 | 613 | |
| YTD Return | +4.44% | +14.87% | |
| 1Y Return | +19.28% | +21.39% | |
| 3Y Return (annualized) | +0.55% | +18.69% | |
| 5Y Return (annualized) | -2.77% | +11.98% | |
| Volatility (annualized) | 15.3% | 14.5% | |
| Max Drawdown | -33.6% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Nov 10, 2006 |
VGHAX vs VYM Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGHAX returned +19.28% while VYM returned +21.39%. Year to date, VGHAX is up 4.44% versus a gain of 14.87% for VYM.
Over three years, VGHAX compounded at +0.55% per year against +18.69% for VYM; over five years the annualized figures are -2.77% and +11.98% respectively. Across the full 5-year window we track, VYM has the edge at +7.00% annualized vs -2.77%. 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 14.5% for VYM. 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 -58.8% for VYM. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VYM charges 0.04%. On a $10,000 position that is $27 vs $4 annually, a gap of $23 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 2.24% for VYM.
Holdings Overlap
VGHAX and VYM share 10 holdings out of 679 unique holdings combined, representing a 9.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or VYM?
VGHAX has an expense ratio of 0.27% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, VGHAX or VYM?
Over the past year VGHAX returned +19.28% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.77% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, VGHAX or VYM?
VGHAX has been the more volatile fund at 15.3% annualized versus 14.5% for VYM. Worst drawdown: VGHAX -33.6% vs VYM -58.8%.
Should I hold both VGHAX and VYM?
VGHAX and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VYM?
VGHAX and VYM share 10 common holdings with a 9.4% weight overlap. Combined, they hold 679 unique securities.
Which pays a higher dividend, VGHAX or VYM?
VGHAX yields 6.45% while VYM yields 2.24%, so VGHAX currently pays the higher dividend yield.
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