"VHT tracks the MSCI US Investable Market Index, capturing the full breadth of U.S. healthcare from mega-cap pharmaceutical giants down to small-cap biotechs. The fund holds over 500 positions, with 99.3% of assets in healthcare."
"The return engine is straightforward: underlying businesses generate cash flows from drug sales, medical procedures, insurance premiums, and diagnostics. VHT's 4% annual portfolio turnover reflects a true buy-and-hold posture."
"Over the past decade, VHT returned about 158%. Over the same period, the total U.S. stock market returned nearly 215%. Healthcare compounded wealth, but it lagged meaningfully."
Vanguard Health Care ETF (VHT) tracks the MSCI US Investable Market Index, focusing on the U.S. healthcare sector with over 500 positions. The fund's structure allows for cash flow generation from various healthcare activities, maintaining a low expense ratio of 0.09%. While VHT has provided long-term gains, it has underperformed compared to the broader market, returning 158% over the past decade versus nearly 215% for the total U.S. stock market. Recent performance shows a 28% gain over five years, lagging behind the market's 57% increase.
Read at 24/7 Wall St.
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