VEA vs VGHAX
Vanguard FTSE Developed Markets ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VEA or VGHAX?
Large Cap Blend against Large Cap Growth.
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window.
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 | VEA | VGHAX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.27% |
| AUM | $231.6B | $34.1B |
| Dividend Yield | 2.41% | 2.70% |
| Holdings | 3,904 | 109 |
| YTD Price Return | +9.65%Best | -0.39% |
| 1Y Price Return | +15.54%Best | +7.17% |
| 3Y Price Return (annualized) | +16.70%Best | -0.49% |
| 5Y Price Return (annualized) | +6.13%Best | -2.58% |
| Volatility (annualized) | 16.4% | 15.3%Best |
| Max Drawdown | -31.6%Best | -32.7% |
| $10,000 over 5 years | $13,465Best | $8,775 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jul 20, 2007 | Nov 12, 2001 |
Not shown on this pair: Top 10 Weight.
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. VEA yields 2.41% 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).
VEA 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.
VEA vs VGHAX Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +15.54% while VGHAX returned +7.17%. Year to date, VEA is up 9.65% versus a loss of 0.39% for VGHAX.
Over three years, VEA compounded at +16.70% per year against -0.49% for VGHAX; over five years the annualized figures are +6.13% and -2.58% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -31.6% for VEA 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 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VEA charges 0.03% per year while VGHAX charges 0.27%. On a $10,000 position that is $3 vs $27 annually, a gap of $24 per year that compounds over a long holding period. On income, VEA currently yields 2.41% against 2.70% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VEA 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
At least 18.9% of VGHAX's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VGHAX and VEA share little of their money.
13 positions in common, counted across the 3,753 positions we hold weights for in VEA and 83 in VGHAX, against full books of 3,904 and 109.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VGHAX | Difference |
|---|---|---|---|
| AZN:LNAstraZeneca PLC | 0.79% | 4.59% | 3.80% |
| GSK:LNGSK plc | 0.32% | 3.00% | 2.68% |
| NOVN:SMNovartis Ag Ordinary Shares | 0.90% | 1.91% | 1.01% |
| ROP:SMRoche Holding Ag Common Stock Chf.001 | 0.95% | 1.18% | 0.23% |
| ARGX:ASArgenx | 0.16% | 1.68% | 1.52% |
| UCB:BRUcb Sa | 0.09% | 1.67% | 1.58% |
| GALD:SMGalderma | 0.12% | 1.37% | 1.25% |
| 4507:TKShionogi & Co., Ltd. Com Stk | 0.04% | 1.01% | 0.97% |
| 4519:JPChugai Pharmaceutical Co. Ltd. Com Stk | 0.09% | 0.94% | 0.85% |
| NOVO.B:CONovo Nordisk As | 0.46% | 0.41% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VEA 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, VEA or VGHAX?
VEA has an expense ratio of 0.03% while VGHAX charges 0.27%. VEA is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, VEA or VGHAX?
Over the past year VEA returned +15.54% vs +7.17% for VGHAX, so VEA leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VGHAX?
VEA has been the more volatile fund at 16.4% annualized versus 15.3% for VGHAX. Worst drawdown: VEA -31.6% vs VGHAX -32.7%.
Should I hold both VEA and VGHAX?
VEA and VGHAX have a monthly-return correlation of 0.62, 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 VEA and VGHAX?
At least 18.9% of VGHAX's money is in holdings VEA also owns. Our book for VEA is partial, so the real figure is this or higher. They hold 13 positions in common, counted across the 3,753 positions we hold weights for in VEA and 83 in VGHAX.
Which pays a higher dividend, VEA or VGHAX?
VEA yields 2.41% while VGHAX yields 2.70%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VEA in a taxable account?
VEA 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 VEA?
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.