Health Care ETF (VHT)

Also available as a 

mutual fund.

Indexed to MSCI US IMI Health Care 25/50

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard Health Care ETF seeks to track the performance of a benchmark index that measures the investment return of health care stocks.

Investment approach

  • Seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index.
  • Multicapitalization equity in the health care sector.
  • The fund employs a passively managed, full-replication strategy when possible.
  • If regulatory constraints prevent full replication, the fund uses a sampling strategy to approximate the index’s key characteristics.
  • The fund remains fully invested.
  • Low expenses minimize net tracking error.

About the benchmark

  • The MSCI US Investable Market Health Care 25/50 Index includes stocks of U.S. companies within the health care sector.
  • The sector is made up of companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products.
  • Uses GICS methodology and clearly classified sectors.
  • Offers broad representation of the target sector across large-, medium-, and small-cap companies.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/24/2014

Market price

The price at which a security trades in the secondary market. The market price is determined by the midpoint between the bid and asked prices as of the closing time of the New York Stock Exchange (typically 4 p.m., Eastern time) on business days.

Change $/%
$105.03
– $0.21 negative change   – 0.19%
NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$105.03
– $0.20 negative change   – 0.19%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

1.33% B

BASED ON HOLDINGS' YIELD TO MATURITY/DIVIDEND FOR LAST 30 DAYS OF PRIOR MONTH

Dividend yield

The annual rate of return on a share of stock, determined by dividing the annual dividend by its current share price. In a stock mutual fund, this figure represents the average dividend yield of the stocks held by the fund.

1.44%

KEY FUND FACTS

Key fund facts

Expense ratio
0.14% as of 12/23/2013
Lipper peer average
expense ratio
1.30% as of 12/31/2013
Designation
Health
Inception on
01/26/2004
Total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds that share the same investment strategy, management and holdings, but does not include any collective trusts sharing the same investment mandate.

$3.4 billion as of 03/31/2014
Net assets for
VHT
 
$3.0 billion as of 03/31/2014
Holdings 
294 as of 03/31/2014
Management style
Index
Benchmark
MSCI US IMI Health Care 25/50
Turnover rate 
 5.40%(Fiscal year-end  08/31/2013)

TRADING

Trading

IOV:

Intraday Optimized Value Ticker
Intraday Optimized Value (IOV), also known as the Intraday Indicative Value (IIV), is the calculated per share price of the ETF which is published every 15 seconds based on the last sale price of each of the underlying securities in the portfolio basket, plus any estimated cash amounts associated with the creation unit.

VHT.IV
Outstanding shares:
28,422,576 as of 03/31/2014
ETF exchange:
NYSE Arca

Objective

Vanguard Health Care ETF seeks to track the performance of a benchmark index that measures the investment return of health care stocks.

Investment approach

  • Seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index.
  • Multicapitalization equity in the health care sector.
  • The fund employs a passively managed, full-replication strategy when possible.
  • If regulatory constraints prevent full replication, the fund uses a sampling strategy to approximate the index’s key characteristics.
  • The fund remains fully invested.
  • Low expenses minimize net tracking error.

About the benchmark

  • The MSCI US Investable Market Health Care 25/50 Index includes stocks of U.S. companies within the health care sector.
  • The sector is made up of companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products.
  • Uses GICS methodology and clearly classified sectors.
  • Offers broad representation of the target sector across large-, medium-, and small-cap companies.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
35%
30
25
20
15
10
5
0%
 
 
 
 
 
  YTD 1 year 5 year 10 year Since inception

01/26/2004

Market price  5.75% 30.45% 22.62% 9.64% 9.12%
NAV 
5.75% 30.49% 22.54% 9.65% 9.12%
Benchmark

Spliced U.S. Investable Market Health Care 25/50 Index

*
5.77% 30.63% 22.73% 9.85%

* MSCI US Investable Market Health Care Index through February 26, 2010; MSCI US Investable Market Health Care 25/50 Index thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Top subsectors as of 03/31/2014

Subindustry VHT Benchmark

MSCI US Investable Market Health Care 25/50 Index

+/- Weight
Pharmaceuticals 40.3% 40.3% 0.0%
Biotechnology 19.6% 19.6% 0.0%
Health Care Equipment 15.4% 15.4% 0.0%
Managed Health Care 7.2% 7.2% 0.0%
Life Sciences Tools & Services 4.8% 4.8% 0.0%
Health Care Services 4.5% 4.5% 0.0%
Health Care Distributors 3.7% 3.7% 0.0%
Health Care Facilities 2.0% 2.0% 0.0%
Health Care Technology 1.3% 1.3% 0.0%
Health Care Supplies 1.2% 1.2% 0.0%
Top sectors equal 100.0% of stock  

Sector categories are based on the Global Industry Classification Standard system.

Top 10 holdings as of 03/31/2014

 as of 03/31/2014
Rank Holding
1 Johnson & Johnson
2 Pfizer Inc.
3 Merck & Co. Inc.
4 Gilead Sciences Inc.
5 Amgen Inc.
6 Bristol-Myers Squibb Co.
7 UnitedHealth Group Inc.
8 AbbVie Inc.
9 Biogen Idec Inc.
10 Medtronic Inc.
Top 10 equals 46.2% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 03/31/2014 VHT Benchmark

MSCI US Investable Market Health Care 25/50 Index

Number of stocks 294 291
Median market cap $60.0 billion $60.0 billion
P/E ratio 27.7x 27.7x
P/B ratio 3.8x 3.8x
Turnover rate 5.4% Fiscal year end 8/2013 N/A

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VHT Benchmark

Spliced U.S. Investable Market Health Care 25/50 Index

R-squared N/A 1.00
Beta N/A 1.00
Alpha – 0.01 N/A
Standard deviation 11.82% 11.83%
Sharpe ratio 1.95 1.96

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. Although Health Care ETF is listed for trading on the NYSE Arca, it is possible that an active trading market may not be maintained. Trading of Health Care ETF on the NYSE Arca may be halted if NYSE Arca officials deem such action appropriate, if Health Care ETF is delisted from the NYSE Arca, or if the activation of marketwide “circuit breakers” halts stock trading generally. The fund’s performance could be hurt by:

  • Industry concentration risk: The chance that there will be overall problems affecting a particular industry. Because the fund normally invests at least 80% of its assets in one industry, the fund’s performance largely depends—for better or for worse—on the overall condition of this industry.
  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices. The fund’s target index may, at times, become focused in stocks of a particular sector, category, or group of companies. Because the fund seeks to track its target index, the fund may underperform the overall stock market.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.
  • Country/regional risk: The chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Because the fund may invest a large portion of its assets in securities of companies located in any one country or region, its performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk is especially high in emerging markets.
  • Currency risk: The chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.




Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value. Investments are subject to market risk. Go to the performance page to read more about risk and volatility.

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