VGHAX vs VTV
Vanguard Health Care Fund Admiral Shares vs Vanguard Morningstar Value ETF
Which is better, VGHAX or VTV?
Large Cap Growth against Large Cap Value.
VTV has a lower expense ratio. VTV led over 1Y, 3Y, 5Y and the full window. VTV is less concentrated, with 22.7% 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 | VTV |
|---|---|---|
| Expense Ratio | 0.27% | 0.03%Best |
| AUM | $34.1B | $184.2B |
| Dividend Yield | 2.70% | 1.93% |
| Holdings | 109 | 311 |
| YTD Price Return | -0.39% | +14.69%Best |
| 1Y Price Return | +7.17% | +18.81%Best |
| 3Y Price Return (annualized) | -0.49% | +16.86%Best |
| 5Y Price Return (annualized) | -2.58% | +9.59%Best |
| Volatility (annualized) | 15.3% | 14.1%Best |
| Max Drawdown | -32.7% | -18.1%Best |
| $10,000 over 5 years | $8,775 | $15,807Best |
| Top 10 Weight | 40.6% | 22.7%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Nov 12, 2001 | Jan 26, 2004 |
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 VTV 1.93% 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 VTV 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 VTV Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Value ETF (VTV) is an ETF from Vanguard (US). Over the past year VGHAX returned +7.17% while VTV returned +18.81%. Year to date, VGHAX is down 0.39% versus a gain of 14.69% for VTV.
Over three years, VGHAX compounded at -0.49% per year against +16.86% for VTV; over five years the annualized figures are -2.58% and +9.59% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.1% for VTV. 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 -18.1% for VTV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VTV 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 1.93% for VTV.
Structure and taxes
VGHAX is a mutual fund and VTV 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
44.4% of VGHAX's money is in holdings VTV also owns. 13.0% of VTV's money is in holdings VGHAX also owns.
The two portfolios partly overlap.
23 positions in common, counted across the 83 positions we hold weights for in VGHAX and 304 in VTV, against full books of 109 and 311.
What only one of them owns
Our book lists 274 positions for VTV that do not appear in our book for VGHAX (84.8% of the fund), and 35 for VGHAX that do not appear in VTV (28.7%).
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 VTV | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 4.83% | 2.33% | 2.50% |
| MRKMerck & Company Inc | 5.44% | 1.33% | 4.11% |
| UNHUnitedhealth Group Incorporated | 4.05% | 1.29% | 2.76% |
| ABBVAbbvie Inc. | 2.30% | 1.65% | 0.65% |
| CVSCvs Health Corp | 2.52% | 0.44% | 2.08% |
| EWEdwards Lifesciences Corp | 2.56% | 0.19% | 2.37% |
| CORCencora Inc | 2.47% | 0.22% | 2.25% |
| DHRDanaher Corporation | 2.18% | 0.50% | 1.68% |
| REGNRegeneron Pharmaceuticals, Inc. | 2.14% | 0.30% | 1.84% |
| ELVElevance Health Inc | 1.83% | 0.30% | 1.53% |
44.4% of VGHAX is already inside VTV.
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 VTV?
VGHAX has an expense ratio of 0.27% while VTV charges 0.03%. VTV is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, VGHAX or VTV?
Over the past year VGHAX returned +7.17% vs +18.81% for VTV, so VTV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or VTV?
VGHAX has been the more volatile fund at 15.3% annualized versus 14.1% for VTV. Worst drawdown: VGHAX -32.7% vs VTV -18.1%.
Should I hold both VGHAX and VTV?
VGHAX and VTV have a monthly-return correlation of 0.68, 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 VTV?
44.4% of VGHAX's money is in holdings VTV also owns. 13.0% of VTV's is in holdings VGHAX also owns. They hold 23 positions in common, counted across the 83 positions we hold weights for in VGHAX and 304 in VTV.
Which pays a higher dividend, VGHAX or VTV?
VGHAX yields 2.70% while VTV yields 1.93%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VTV in a taxable account?
VTV 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 VTV better than VGHAX?
VTV has a lower expense ratio. VTV led over 1Y, 3Y, 5Y and the full window. VTV is less concentrated, with 22.7% 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.