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VHT - ETF AI Analysis

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VHT

Vanguard Health Care ETF (VHT)

Rating:72Outperform
Price Target:
VHT, the Vanguard Health Care ETF, has a solid overall rating, reflecting a portfolio led by strong, established healthcare companies. Major holdings like Johnson & Johnson, Merck, and Gilead Sciences support the fund’s quality through robust financial performance, positive earnings calls, and strategic initiatives that underpin long-term growth. The main risk is the fund’s focus on the healthcare sector, which means performance is closely tied to industry-specific challenges such as regulatory changes, product risks, and leverage or valuation concerns at some holdings like Eli Lilly and AbbVie.
Positive Factors
Large, Established Fund
The ETF manages a very large pool of assets, which suggests strong investor interest and stability.
Low Expense Ratio
The fund’s very low annual fee helps investors keep more of any returns they earn over time.
Mix of Strong and Defensive Leaders
Several major holdings like Johnson & Johnson, Merck, UnitedHealth, Amgen, and Gilead have shown solid recent performance, helping offset weaker names in the portfolio.
Negative Factors
Sector Concentration Risk
Almost all of the ETF is invested in health care, so it can be hit hard if that single sector runs into trouble.
Heavy Reliance on a Few Stocks
A small number of companies, especially Eli Lilly and Johnson & Johnson, make up a large share of the fund, increasing the impact if any of them struggle.
Recent Performance Weakness
The ETF has recently posted negative returns over the year-to-date and three-month periods, reflecting pressure on several of its larger holdings.

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

VHT Summary

Vanguard Health Care ETF (VHT) is a fund that tracks the MSCI US IMI 25/50 Health Care Index, giving you broad exposure to U.S. health care companies. It holds many types of businesses, including drug makers, biotech firms, medical device companies, and health care service providers. Well-known holdings include Johnson & Johnson and Eli Lilly. Someone might invest in VHT to tap into long-term growth driven by aging populations and rising health care spending, while spreading risk across many companies. A key risk is that it is heavily focused on the health care sector, so it can rise or fall with that industry.
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

VHT is a pure health care play, and its story is being written mostly by big U.S. drugmakers. Eli Lilly is a heavyweight at the top of the portfolio, but its recent performance has been mixed, so it’s not pulling as hard as it once did. Johnson & Johnson and Merck are steadier anchors, helping to keep returns on track. On the flip side, device and tools names like Abbott and Intuitive Surgical have been lagging, acting as a bit of a brake on this otherwise pharma-driven fund.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Eli Lilly & Co11.89%$2.22B$893.19B29.12%
72
Outperform
Johnson & Johnson9.34%$1.74B$532.77B43.51%
78
Outperform
AbbVie6.18%$1.15B$356.49B9.18%
66
Neutral
Merck & Company4.80%$895.15M$275.09B46.61%
80
Outperform
UnitedHealth3.94%$734.90M$345.08B-0.17%
72
Outperform
Amgen3.05%$568.03M$179.02B24.76%
77
Outperform
Thermo Fisher2.97%$553.68M$172.80B15.35%
72
Outperform
Abbott Laboratories2.87%$535.28M$146.87B-36.72%
73
Outperform
Gilead Sciences2.78%$518.40M$163.06B35.52%
78
Outperform
Intuitive Surgical2.63%$489.95M$159.39B-16.11%
78
Outperform

VHT Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
275.04
Negative
100DMA
282.04
Negative
200DMA
272.07
Negative
Market Momentum
MACD
-1.31
Negative
RSI
42.34
Neutral
STOCH
65.01
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VHT, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 272.72, equal to the 50-day MA of 275.04, and equal to the 200-day MA of 272.07, indicating a bearish trend. The MACD of -1.31 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VHT.

VHT Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$16.05B0.09%
72
Outperform
$132.97B0.09%
74
Outperform
$110.88B0.08%
75
Outperform
$51.34B0.08%
72
Outperform
$37.47B0.08%
73
Outperform
$2.86B0.08%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VHT
Vanguard Health Care ETF
268.98
24.46
10.00%
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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