VHT vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VHT delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VHTMore Diversified: VXUS

Side-by-Side Comparison

MetricVHTVXUSWinner
Expense Ratio0.09%0.05%
AUM$17.8B$156.5B
Dividend Yield1.64%2.60%
Holdings4148,747
YTD Return+8.87%+14.57%
1Y Return+32.79%+27.82%
3Y Return (annualized)+9.76%+19.27%
5Y Return (annualized)+5.39%+9.28%
Volatility (annualized)13.9%15.1%
Max Drawdown-40.9%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionJan 26, 2004Jan 26, 2011

VHT vs VXUS Performance

Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VHT returned +32.79% while VXUS returned +27.82%. Year to date, VHT is up 8.87% versus a gain of 14.57% for VXUS.

Over three years, VHT compounded at +9.76% per year against +19.27% for VXUS; over five years the annualized figures are +5.39% and +9.28% respectively. Across the full 16-year window we track, VHT has the edge at +8.85% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VHT charges 0.09% per year while VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, VHT currently yields 1.64% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

VHT and VXUS share 0 holdings out of 8260 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, VHT or VXUS?

VHT has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, VHT or VXUS?

Over the past year VHT returned +32.79% vs +27.82% for VXUS, so VHT leads on 1-year performance. Over the longest common window we track (16 years), VHT annualized +8.85% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, VHT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 13.9% for VHT. Worst drawdown: VHT -40.9% vs VXUS -39.9%.

Should I hold both VHT and VXUS?

VHT and VXUS have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VHT and VXUS?

VHT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8260 unique securities.

Which pays a higher dividend, VHT or VXUS?

VHT yields 1.64% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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