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VHT - ETF AI Analysis

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VHT

Vanguard Health Care ETF (VHT)

Rating:71Outperform
Price Target:
VHT, the Vanguard Health Care ETF, earns a solid overall rating thanks to heavyweight positions in leaders like Eli Lilly, Johnson & Johnson, and Merck, which all show strong financial performance, positive earnings commentary, and strategic initiatives that support long-term growth. Additional support comes from holdings like Gilead Sciences and Intuitive Surgical, which benefit from successful product portfolios and robust operations, though some names such as AbbVie and Thermo Fisher face valuation, leverage, and cash flow concerns that slightly temper the fund’s appeal. The main risk factor is its concentrated exposure to the health care sector, meaning the ETF’s performance is closely tied to industry-specific challenges and regulatory or reimbursement changes.
Positive Factors
Strong Core Health Care Holdings
Several of the largest positions, including major drug and insurance companies, have shown strong performance this year, helping support the ETF’s returns.
Focused Health Care Exposure
The fund is heavily invested in the health care sector, giving investors targeted exposure to a defensive industry that can be more resilient in different economic environments.
Low Expense Ratio
The ETF charges a very low annual fee, which helps investors keep more of their returns over time compared with higher-cost funds.
Negative Factors
High Concentration in Top Stocks
A small number of companies make up a large portion of the portfolio, which increases the impact that any one stock’s performance can have on the fund.
Underperforming Key Holdings
Some notable positions in the top 10, such as a major medical device maker and other health care names, have shown weak performance this year and may drag on overall results.
Limited Sector and Geographic Diversification
The ETF is almost entirely invested in U.S. health care companies, which means investors are highly exposed to one sector in one country and may face larger swings if that area struggles.

VHT vs. SPDR S&P 500 ETF (SPY)

VHT Summary

Vanguard Health Care ETF (VHT) is a fund that follows the MSCI US IMI 25/50 Health Care index, giving you broad exposure to U.S. health care companies. It owns a mix of drug makers, biotech firms, medical device companies, and health insurers, including well-known names like Johnson & Johnson and Eli Lilly. Investors might consider VHT for long-term growth and diversification, since health care is supported by aging populations and ongoing medical innovation. However, because it focuses heavily on the health care sector, its value can go up and down with changes in that industry and the overall stock market.
How much will it cost me?The Vanguard Health Care ETF (VHT) has an expense ratio of 0.09%, which means you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it is a passively managed fund that tracks an index, keeping costs low for investors.
What would affect this ETF?The Vanguard Health Care ETF (VHT) could benefit from long-term trends like aging populations, increased global health care spending, and advancements in medical technology, which drive demand for pharmaceuticals, biotechnology, and medical devices. However, it may face challenges from regulatory changes, patent expirations for major drug companies, or economic downturns that could impact health care budgets and innovation funding. Its focus on U.S.-based health care companies means it is particularly sensitive to domestic policy shifts and market conditions.

VHT Top 10 Holdings

Vanguard Health Care ETF leans heavily on big U.S. drugmakers, with Eli Lilly, Johnson & Johnson, AbbVie, Merck, and Amgen doing most of the heavy lifting as their shares have generally been rising and steady over the past few months. UnitedHealth adds a strong managed-care angle, though it’s had a slightly bumpier near-term ride. On the flip side, device and tools names like Thermo Fisher and especially Intuitive Surgical have been losing steam, acting as a mild drag. Overall, this is a U.S.-centric bet on large-cap pharma and health care giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Eli Lilly & Co14.16%$2.90B$1.08T45.82%
72
Outperform
Johnson & Johnson8.87%$1.81B$617.78B48.74%
78
Outperform
AbbVie6.54%$1.34B$443.36B24.30%
66
Neutral
UnitedHealth5.55%$1.13B$376.34B72.36%
72
Outperform
Merck & Company4.67%$955.04M$321.57B59.99%
80
Outperform
Amgen2.87%$586.81M$207.87B25.48%
77
Outperform
Thermo Fisher2.74%$560.10M$213.42B23.03%
72
Outperform
Abbott Laboratories2.32%$475.09M$182.90B-17.56%
73
Outperform
Gilead Sciences2.31%$471.40M$161.66B14.53%
78
Outperform
Intuitive Surgical2.08%$424.60M$124.82B-22.33%
78
Outperform

VHT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
295.17
Positive
100DMA
283.49
Positive
200DMA
283.36
Positive
Market Momentum
MACD
3.34
Positive
RSI
59.75
Neutral
STOCH
47.78
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VHT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 304.59, equal to the 50-day MA of 295.17, and equal to the 200-day MA of 283.36, indicating a bullish trend. The MACD of 3.34 indicates Positive momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 47.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VHT.

VHT Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$18.57B0.09%
71
Outperform
$139.77B0.09%
74
Outperform
$115.67B0.08%
75
Outperform
$57.95B0.08%
72
Outperform
$41.98B0.08%
73
Outperform
$3.31B0.08%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VHT
Vanguard Health Care ETF
312.12
75.06
31.66%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
XLV
Health Care Select Sector SPDR Fund
FHLC
Fidelity MSCI Health Care Index ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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