VHT vs VYM
Vanguard Health Care ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VHT delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VHT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $17.8B | $79.0B | |
| Dividend Yield | 1.64% | 2.86% | |
| Holdings | 414 | 568 | |
| YTD Return | +10.12% | +16.16% | |
| 1Y Return | +33.07% | +26.05% | |
| 3Y Return (annualized) | +9.94% | +18.43% | |
| 5Y Return (annualized) | +5.93% | +12.21% | |
| Volatility (annualized) | 13.9% | 14.6% | |
| Max Drawdown | -40.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VHT vs VYM Performance
Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VHT returned +33.07% while VYM returned +26.05%. Year to date, VHT is up 10.12% versus a gain of 16.16% for VYM.
Over three years, VHT compounded at +9.94% per year against +18.43% for VYM; over five years the annualized figures are +5.93% and +12.21% respectively. Across the full 20-year window we track, VHT has the edge at +8.90% annualized vs +7.09%. 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 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 -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 0.76. 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 1.64% against 2.86% for VYM.
Holdings Overlap
VHT and VYM share 22 holdings out of 935 unique holdings combined, representing a 13.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VHT or VYM?
Over the past year VHT returned +33.07% vs +26.05% for VYM, so VHT leads on 1-year performance. Over the longest common window we track (20 years), VHT annualized +8.90% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VHT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.9% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VHT and VYM?
VHT and VYM share 22 common holdings with a 13.1% weight overlap. Combined, they hold 935 unique securities.
Which pays a higher dividend, VHT or VYM?
VHT yields 1.64% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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