Launched on January 26, 2004, the Vanguard Health Care ETF (VHT) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Broad segment of the equity market.
Vanguard Health Care ETF and Health Care Select Sector SPDR Fund both benefit from healthcare innovation tailwinds, earning a buy rating. VHT offers broader diversification and greater exposure to small-caps and biotechs, providing stronger upside potential compared to XLV's mega-cap pharma focus. XLV's concentrated portfolio delivers higher dividend yield and stability, but exposes investors to greater idiosyncratic risk from top holdings like LLY.
LLY's expanding AI alliances highlight how pharma-tech partnerships are transforming healthcare and lifting key sector ETFs like XLV.
As National Alzheimer's Awareness Month spotlights new treatments, healthcare ETFs like XLV and VHT might gain fresh investor appeal.
Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Vanguard Health Care ETF (VHT) is a passively managed exchange traded fund launched on January 26, 2004.
Looking for broad exposure to the Healthcare - Broad segment of the equity market? You should consider the Vanguard Health Care ETF (VHT), a passively managed exchange traded fund launched on January 26, 2004.
VHT offers broad, low-cost healthcare exposure with a market-cap weighted approach, favoring large caps but including some small innovators. The ETF is best suited as a core, defensive allocation, benefiting from healthcare's inelastic demand and resilience in downturns. Recent underperformance is due to post-COVID contraction and tech-led rallies, but VHT remains well-positioned for defensive rotation.
VHT is attractively valued at 16x forward earnings, but sector momentum is weak and technicals remain bearish. Healthcare sector underperforms YTD, with key holdings like UNH and LLY facing significant declines, increasing near-term downside risk. VHT's portfolio is large-cap heavy and offers a solid dividend yield, but concentration risk and volatility are elevated.
Launched on 01/26/2004, the Vanguard Health Care ETF (VHT) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Broad segment of the equity market.
Healthcare stock valuations are struggling to rise due to political risk and scandals, but this could create attractive entry points for long-term investors. And the reason lies in the bearish narrative surrounding two of the sector's leaders: UNH and LLY. Among healthcare ETFs, VHT stands out in my view as the most representative of the sector, in terms of performance, risk, and costs.
Launched on 01/26/2004, the Vanguard Health Care ETF (VHT) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Broad segment of the equity market.
Vanguard Health Care ETF (VHT) is rated a hold due to high valuations and low profitability of top holdings despite strong healthcare sector growth potential. VHT's top holdings, Eli Lilly, UnitedHealth, and AbbVie, face valuation and profitability concerns, impacting the fund's overall performance and attractiveness. Competitor funds like XLV offer lower fees and better performance, making them more appealing compared to VHT's higher expense ratio and recent negative returns.