VHT vs VOO
Vanguard Health Care ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VHT delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VHT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $18.3B | $997.4B | |
| Dividend Yield | 1.54% | 1.08% | |
| Holdings | 427 | 509 | |
| YTD Return | +11.60% | +12.87% | |
| 1Y Return | +27.32% | +21.15% | |
| 3Y Return (annualized) | +10.97% | +20.93% | |
| 5Y Return (annualized) | +5.59% | +12.76% | |
| Volatility (annualized) | 14.0% | 14.1% | |
| Max Drawdown | -40.9% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
VHT vs VOO Performance
Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VHT returned +27.32% while VOO returned +21.15%. Year to date, VHT is up 11.60% versus a gain of 12.87% for VOO.
Over three years, VHT compounded at +10.97% per year against +20.93% for VOO; over five years the annualized figures are +5.59% and +12.76% respectively. Across the full 16-year window we track, VOO has the edge at +13.46% annualized vs +8.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 14.0% for VHT. 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 -40.9% for VHT and -34.3% for VOO. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VHT charges 0.09% per year while VOO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VHT currently yields 1.54% against 1.08% for VOO.
Holdings Overlap
VHT and VOO share 60 holdings out of 864 unique holdings combined, representing a 8.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VHT or VOO?
VHT has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VHT or VOO?
Over the past year VHT returned +27.32% vs +21.15% for VOO, so VHT leads on 1-year performance. Over the longest common window we track (16 years), VHT annualized +8.94% vs +13.46% for VOO. Past performance does not guarantee future results.
Which is riskier, VHT or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 14.0% for VHT. Worst drawdown: VHT -40.9% vs VOO -34.3%.
Should I hold both VHT and VOO?
VHT and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VHT and VOO?
VHT and VOO share 60 common holdings with a 8.9% weight overlap. Combined, they hold 864 unique securities.
Which pays a higher dividend, VHT or VOO?
VHT yields 1.54% while VOO yields 1.08%, so VHT currently pays the higher dividend yield.
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