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.
The S&P 500 (SNPINDEX: ^GSPC) is widely considered the best gauge for the overall U.S. stock market due to its scope and diversity. It measures the performance of 500 large-cap companies across all 11 stock market sectors.
January has historically been a strong month for the U.S. stock market, and that has remained true in 2025. The S&P 500 (SNPINDEX: ^GSPC) advanced 2.7% in January despite headwinds from elevated Treasury yields and uncertainty surrounding tariffs and interest rates.
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 01/26/2004.
VHT is a low-cost index fund providing broad exposure to U.S. health care companies and is currently trading 12% below 52-week lows. The fund tracks the MSCI US IMI Health Care 25/50 Index, encompassing 400+ U.S. health care stocks. VHT offers better total returns than Vanguard's actively managed health care fund over 3, 5, and 10 years.
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 01/26/2004.
VHT offers exposure to 400 healthcare companies and its biggest sector allocations are in biotechnology, pharmaceuticals, and healthcare equipment. It has outperformed the market in the past, showing resilience during volatile periods and reflecting the sector's steady demand. However, its high valuation and concentration risks make the risk/reward profile unattractive right now.
If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Vanguard Health Care ETF (VHT), a passively managed exchange traded fund launched on 01/26/2004.
The healthcare industry shows consistent growth and resilience, driven by medical advancements and aging demographics, making long-term investing in healthcare sensible. VHT offers diversified exposure to healthcare sectors with a low expense ratio, although it is top-heavy with significant holdings in a few large-cap stocks. VHT's recent breakout from a long-term trading range suggests potential for continued appreciation, supported by favorable market conditions and potential rate cuts.