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A Quick Overview of the Vanguard Health Care Index Fund
An ETF that provides exposure to the health care sector
Health care is one of the most important sectors in the United States. Some of its key segments include health insurance, health care marketing, pharmaceuticals, health care technology, and health administration. According to the U.S. Centers for Medicare & Medicaid Services, United States’ national health care expenditure reached $4.1 trillion in 2020 and is estimated to reach $6.2 trillion by 2028. As spending in the health care sector increases, it is important to be aware of companies leading the sector. There is an ETF known as the Vanguard Health Care Index Fund (VHT) that provides that context.
VHT is an ETF that employs an indexing investment approach designed to track the performance of the MSCI US IMI Health Care 25/50 Index, which is an index made up of stocks of large, mid-size, and small U.S. companies within the health care Global Industrial Classification Standard (GICS) sector. The top holdings of VHT include Johnson & Johnson, UnitedHealth Group, Pfizer, Abbott Laboratories, Thermo Fisher Scientific, AbbVie, Eli Lilly, Danaher, Merck & Co, and Medtronic.
VHT was launched on January 26th, 2004. Since its launch, the ETF has provided a total return of approximately 544% and an average annual total return of approximately 10%, with dividends reinvested. As of December 12th, 2022, VHT is currently at $254.22 per share, net assets of $19.83 billion, and an expense ratio of 0.10%.
If you are looking for exposure to the health care sector or want a simple way to keep track of the leading health care companies, VHT will be one of your best options. Let me know in the comments what you think about VHT.
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