VHT vs VTI
Vanguard Health Care ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VHT delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VHT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $17.8B | $663.5B | |
| Dividend Yield | 1.64% | 1.07% | |
| Holdings | 414 | 3,543 | |
| YTD Return | +10.46% | +14.22% | |
| 1Y Return | +32.33% | +22.19% | |
| 3Y Return (annualized) | +10.05% | +21.27% | |
| 5Y Return (annualized) | +5.83% | +12.23% | |
| Volatility (annualized) | 13.9% | 15.3% | |
| Max Drawdown | -40.9% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | May 24, 2001 |
VHT vs VTI Performance
Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VHT returned +32.33% while VTI returned +22.19%. Year to date, VHT is up 10.46% versus a gain of 14.22% for VTI.
Over three years, VHT compounded at +10.05% per year against +21.27% for VTI; over five years the annualized figures are +5.83% and +12.23% respectively. Across the full 23-year window we track, VHT has the edge at +8.92% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.9% 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 -56.6% for VTI. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VHT charges 0.09% per year while VTI 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 1.64% against 1.07% for VTI.
Holdings Overlap
VHT and VTI share 311 holdings out of 2871 unique holdings combined, representing a 8.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VHT or VTI?
VHT has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VHT or VTI?
Over the past year VHT returned +32.33% vs +22.19% for VTI, so VHT leads on 1-year performance. Over the longest common window we track (23 years), VHT annualized +8.92% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, VHT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.9% for VHT. Worst drawdown: VHT -40.9% vs VTI -56.6%.
Should I hold both VHT and VTI?
VHT and VTI have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VHT and VTI?
VHT and VTI share 311 common holdings with a 8.4% weight overlap. Combined, they hold 2871 unique securities.
Which pays a higher dividend, VHT or VTI?
VHT yields 1.64% while VTI yields 1.07%, so VHT currently pays the higher dividend yield.
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