VGHAX vs VTI
Vanguard Health Care Fund Admiral Shares vs Vanguard Morningstar Total Stock Market ETF
Which is better, VGHAX or VTI?
Large Cap Growth against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% 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 | VGHAX | VTI |
|---|---|---|
| Expense Ratio | 0.27% | 0.03%Best |
| AUM | $34.1B | $689.2B |
| Dividend Yield | 2.70% | 1.06% |
| Holdings | 109 | 3,524 |
| YTD Price Return | -0.39% | +12.06%Best |
| 1Y Price Return | +7.17% | +15.31%Best |
| 3Y Price Return (annualized) | -0.49% | +20.42%Best |
| 5Y Price Return (annualized) | -2.58% | +10.44%Best |
| Volatility (annualized) | 15.3%Best | 15.9% |
| Max Drawdown | -32.7% | -26.2%Best |
| $10,000 over 5 years | $8,775 | $16,430Best |
| Top 10 Weight | 40.6% | 33.5%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Nov 12, 2001 | May 24, 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. VGHAX yields 2.70% and VTI 1.06% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VGHAX vs VTI 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.
VGHAX vs VTI Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VGHAX returned +7.17% while VTI returned +15.31%. Year to date, VGHAX is down 0.39% versus a gain of 12.06% for VTI.
Over three years, VGHAX compounded at -0.49% per year against +20.42% for VTI; over five years the annualized figures are -2.58% and +10.44% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -32.7% for VGHAX and -26.2% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VTI charges 0.03%. On a $10,000 position that is $27 vs $3 annually, a gap of $24 per year that compounds over a long holding period. On income, VGHAX currently yields 2.70% against 1.06% for VTI.
Structure and taxes
VGHAX is a mutual fund and VTI 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
71.6% of VGHAX's money is in holdings VTI also owns. 6.9% of VTI's money is in holdings VGHAX also owns.
Most of VGHAX is already inside VTI. Owning both mostly buys the same companies twice.
55 positions in common, counted across the 83 positions we hold weights for in VGHAX and 3,441 in VTI, against full books of 109 and 3,524.
What only one of them owns
Our book lists 1,111 positions for VTI that do not appear in our book for VGHAX (90.6% of the fund), and 3 for VGHAX that do not appear in VTI (1.4%).
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 VGHAX | Weight in VTI | Difference |
|---|---|---|---|
| LLYEli Lilly & Co. | 8.61% | 1.33% | 7.28% |
| MRKMerck & Company Inc | 5.44% | 0.49% | 4.95% |
| JNJJohnson & Johnson - Common | 4.83% | 0.87% | 3.96% |
| UNHUnitedhealth Group Incorporated | 4.05% | 0.48% | 3.57% |
| ABBVAbbvie Inc. | 2.30% | 0.61% | 1.69% |
| ISRGIntuitive Surgical Inc. | 2.52% | 0.18% | 2.34% |
| CVSCvs Health Corp | 2.52% | 0.16% | 2.36% |
| EWEdwards Lifesciences Corp | 2.56% | 0.07% | 2.49% |
| CORCencora Inc | 2.47% | 0.08% | 2.39% |
| VRTXNvaesrtex Pharmaceuticals Inc | 2.36% | 0.19% | 2.17% |
71.6% of VGHAX is already inside VTI.
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, VGHAX or VTI?
VGHAX has an expense ratio of 0.27% while VTI charges 0.03%. VTI is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, VGHAX or VTI?
Over the past year VGHAX returned +7.17% vs +15.31% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or VTI?
VTI has been the more volatile fund at 15.9% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -32.7% vs VTI -26.2%.
Should I hold both VGHAX and VTI?
VGHAX and VTI have a monthly-return correlation of 0.57, 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 VGHAX and VTI?
71.6% of VGHAX's money is in holdings VTI also owns. 6.9% of VTI's is in holdings VGHAX also owns. They hold 55 positions in common, counted across the 83 positions we hold weights for in VGHAX and 3,441 in VTI.
Which pays a higher dividend, VGHAX or VTI?
VGHAX yields 2.70% while VTI yields 1.06%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VTI in a taxable account?
VTI 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 VTI better than VGHAX?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% 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.