VBK vs VGHAX
Vanguard Morningstar Small-Cap Growth ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VBK or VGHAX?
Small Cap Growth against Large Cap Growth.
VBK has a lower expense ratio. VBK led over 1Y, 3Y, 5Y and the full window. VBK is less concentrated, with 9.5% of the fund in its ten largest positions against 40.6%.
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 | VBK | VGHAX |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.27% |
| AUM | $22.8B | $34.1B |
| Dividend Yield | 0.41% | 2.70% |
| Holdings | 545 | 109 |
| YTD Price Return | +7.73%Best | -0.39% |
| 1Y Price Return | +9.13%Best | +7.17% |
| 3Y Price Return (annualized) | +15.96%Best | -0.49% |
| 5Y Price Return (annualized) | +2.74%Best | -2.58% |
| Volatility (annualized) | 20.9% | 15.3%Best |
| Max Drawdown | -38.5% | -32.7%Best |
| $10,000 over 5 years | $11,447Best | $8,775 |
| Top 10 Weight | 9.5%Best | 40.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Growth |
| Inception | Jan 26, 2004 | Nov 12, 2001 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VBK yields 0.41% and VGHAX 2.70% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VBK vs VGHAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VBK vs VGHAX Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VBK returned +9.13% while VGHAX returned +7.17%. Year to date, VBK is up 7.73% versus a loss of 0.39% for VGHAX.
Over three years, VBK compounded at +15.96% per year against -0.49% for VGHAX; over five years the annualized figures are +2.74% and -2.58% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.3% for VGHAX. 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 -38.5% for VBK and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.56. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBK charges 0.05% per year while VGHAX charges 0.27%. On a $10,000 position that is $5 vs $27 annually, a gap of $22 per year that compounds over a long holding period. On income, VBK currently yields 0.41% against 2.70% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VBK is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
4.6% of VBK's money is in holdings VGHAX also owns. 9.1% of VGHAX's money is in holdings VBK also owns.
VGHAX and VBK share little of their money.
17 positions in common, counted across the 542 positions we hold weights for in VBK and 83 in VGHAX, against full books of 545 and 109.
What only one of them owns
Our book lists 41 positions for VGHAX that do not appear in our book for VBK (64.0% of the fund), and 507 for VBK that do not appear in VGHAX (89.3%).
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 VBK | Weight in VGHAX | Difference |
|---|---|---|---|
| RVMDRevolution Medicines Inc Ser C Pc Pp | 1.20% | 0.98% | 0.22% |
| INCYIncyte Corporation Ltd. | 0.61% | 0.75% | 0.14% |
| UTHRUnited Therapeutics Corp | 0.31% | 0.98% | 0.67% |
| IONSIonis Pharmaceuticals Inc | 0.27% | 0.84% | 0.57% |
| BBIOBridgebio Pharma Inc_None_0 | 0.39% | 0.66% | 0.27% |
| MDGLMadrigal Pharmaceuticals Inc | 0.29% | 0.69% | 0.40% |
| CYTKCytokinetics Inc | 0.28% | 0.68% | 0.40% |
| PTGXProtagonist Therapeutics Inc | 0.27% | 0.45% | 0.18% |
| KYMRKymera Therapeutics Inc | 0.23% | 0.49% | 0.26% |
| CGONCg Oncology Inc | 0.08% | 0.53% | 0.45% |
You are not choosing between two funds in isolation.
Whichever of VBK and VGHAX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBK or VGHAX?
VBK has an expense ratio of 0.05% while VGHAX charges 0.27%. VBK is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, VBK or VGHAX?
Over the past year VBK returned +9.13% vs +7.17% for VGHAX, so VBK leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or VGHAX?
VBK has been the more volatile fund at 20.9% annualized versus 15.3% for VGHAX. Worst drawdown: VBK -38.5% vs VGHAX -32.7%.
Should I hold both VBK and VGHAX?
VBK and VGHAX have a monthly-return correlation of 0.56, 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 VBK and VGHAX?
9.1% of VGHAX's money is in holdings VBK also owns. 9.1% of VGHAX's is in holdings VBK also owns. They hold 17 positions in common, counted across the 542 positions we hold weights for in VBK and 83 in VGHAX.
Which pays a higher dividend, VBK or VGHAX?
VBK yields 0.41% while VGHAX yields 2.70%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VBK in a taxable account?
VBK is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than VBK?
VBK has a lower expense ratio. VBK led over 1Y, 3Y, 5Y and the full window. VBK is less concentrated, with 9.5% of the fund in its ten largest positions against 40.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.