(VHT) Vanguard Health Care - Ratings and Ratios

The Vanguard Health Care Index Fund ETF Shares (VHT) is a passively managed exchange-traded fund designed to provide exposure to the U.S. healthcare sector by tracking the performance of a market-capitalization-weighted index. The fund seeks to replicate the returns of the MSCI US Investable Market Health Care 25/50 Index, which includes a broad range of U.S. healthcare companies across various market caps, from large-cap to small-cap firms. This structure allows investors to gain diversified exposure to the entire healthcare value chain, including pharmaceuticals, biotechnology, medical devices, healthcare providers, and life sciences companies.

As a passive investment vehicle, VHT aims to hold a portfolio of stocks that closely mirrors the composition and weighting of its target index. The fund typically invests at least 95% of its assets in securities included in the index, ensuring high fidelity to its benchmark. This approach minimizes active management risk and keeps operating expenses low, with a current expense ratio of 0.10%. The ETFs structure also provides transparency, as its holdings are disclosed daily, and liquidity, given its listing on the NYSE ARCA exchange.

With over $17 billion in assets under management, VHT is one of the largest and most liquid healthcare-focused ETFs available to investors. Its diversified portfolio spans multiple subsectors within healthcare, offering exposure to both established players and innovative disruptors. This makes it a popular choice for investors seeking to capitalize on long-term demographic trends such as an aging population, increased healthcare spending, and advancements in medical technology. However, like all sector-specific funds, VHT comes with heightened exposure to industry-specific risks, including regulatory changes, drug pricing pressures, and clinical trial outcomes.