VHT vs VYM
Vanguard Health Care ETF vs Vanguard High Dividend Yield ETF
Which is better, VHT or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VHT led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VHT | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $20.9B | $81.6B |
| Dividend Yield | 1.48% | 2.22% |
| Holdings | 427 | 613 |
| YTD Return | +10.92% | +11.47%Best |
| 1Y Return | +26.30%Best | +15.94% |
| 3Y Return (annualized) | +11.85% | +18.03%Best |
| 5Y Return (annualized) | +5.97% | +12.35%Best |
| Volatility (annualized) | 14.5%Best | 14.6% |
| Max Drawdown | -40.9%Best | -58.8% |
| $10,000 over 5 years | $13,363 | $17,901Best |
| Top 10 Weight | 52.0% | 26.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 21, 2026 (19.8 years).
VHT vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
VHT vs VYM Performance
Vanguard Health Care ETF (VHT) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VHT returned +26.30% while VYM returned +15.94%. Year to date, VHT is up 10.92% versus a gain of 11.47% for VYM.
Over three years, VHT compounded at +11.85% per year against +18.03% for VYM; over five years the annualized figures are +5.97% and +12.35% respectively. Across the full 20-year window we track, VHT has the edge at +9.49% annualized vs +6.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.5% 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 -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VHT currently yields 1.48% against 2.22% for VYM.
Holdings Overlap
47.0% of VHT's money is in holdings VYM also owns. 13.2% of VYM's money is in holdings VHT also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 405 positions we hold weights for in VHT and 557 in VYM, against full books of 427 and 613.
What only one of them owns
Our book lists 504 positions for VYM that do not appear in our book for VHT (83.9% of the fund), and 305 for VHT that do not appear in VYM (51.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VHT | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 8.84% | 2.51% | 6.33% |
| ABBVAbbvie Inc. | 6.45% | 1.80% | 4.65% |
| UNHUnitedhealth Group Incorporated | 5.46% | 1.52% | 3.94% |
| MRKMerck & Company Inc | 4.68% | 1.31% | 3.37% |
| AMGNAmgen Inc. | 3.02% | 0.78% | 2.24% |
| ABTAbbott Laboratories | 2.67% | 0.74% | 1.93% |
| GILDGilead Sciences | 2.35% | 0.66% | 1.69% |
| PFEPfizer Inc | 2.07% | 0.58% | 1.49% |
| BMYBristol-Myers Squibb Co. | 1.94% | 0.54% | 1.40% |
| CVSCvs Corp | 1.93% | 0.54% | 1.39% |
47.0% of VHT is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VHT or VYM?
VHT has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VHT or VYM?
Over the past year VHT returned +26.30% vs +15.94% for VYM, so VHT leads on 1-year performance. Over the longest common window we track (20 years), VHT annualized +9.49% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VHT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.5% for VHT. Worst drawdown: VHT -40.9% vs VYM -58.8%.
Should I hold both VHT and VYM?
VHT and VYM have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VHT and VYM?
47.0% of VHT's money is in holdings VYM also owns. 13.2% of VYM's is in holdings VHT also owns. They hold 24 positions in common, counted across the 405 positions we hold weights for in VHT and 557 in VYM.
Which pays a higher dividend, VHT or VYM?
VHT yields 1.48% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VHT?
VYM has a lower expense ratio. VHT led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.