Fund Evaluator:
Vanguard Health Care Inv (VGHCX)
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Fund Details
Vanguard Health Care Inv Overview
Vanguard Health Care Inv (VGHCX) is an actively managed Sector Equity Health fund. Vanguard launched the fund in 1984.
The investment seeks long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks of companies principally engaged in the development, production, or distribution of products and services related to the health care industry. The adviser may also consider companies engaged in medical, diagnostic, biochemical, and other research and development activities. The fund may invest up to 50% of its assets in foreign stocks. It is non-diversified.
About Vanguard Health Care Inv (VGHCX)
There are 1 members of the management team with an average tenure of 3.10 years: Rebecca Sykes (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and MSCI ACWI/Health Care NR USD index with a weighting of 100%. Vanguard Health Care Inv has 115 securities in its portfolio. The top 10 holdings constitute 40.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Health Care Inv is part of the Equity global asset class and is within the Sector Equity fund group. Vanguard Health Care Inv has 24.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 74.7%. There is 24.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Health Care Inv has 0.5% of the portfolio in cash.
Assets Under Management
The fund has $5 billion in total assets, which is above the $869 million average for the Health category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VGHCX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Health Care Inv expense ratio is below average compared to funds in the Health category. Vanguard Health Care Inv has an expense ratio of 0.33%, which is 73% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Health Care Inv has a portfolio turnover rate of 47%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 61% for the Health category.
Recently, in the month of June 2026, Vanguard Health Care Inv returned 6.2%, which earned it a grade of D, as the Health category had an average return of 8.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Health Care Inv has a trailing yield of 1.04%, which is above the 0.39% category average.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Health Care Inv Grades
Year to date, the fund has returned 4.4%, 3.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 26.1% over the past year (grade of D), 7.0% over the past three years (grade of F) and 5.4% per year over the past five years (grade of C) and 8.6% per year over the past 10 years (grade of D).
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VGHCX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VGHCX Return (NAV) | 6.2% | 7.7% | 26.1% | 7.0% | 5.4% | 8.6% |
| VGHCX Grade | D | F | D | F | C | D |
| +/- Category | -2.2% | -4.2% | -7.5% | -3.9% | 0.2% | -1.4% |
| Health Avg | 8.4% | 11.9% | 33.6% | 11.0% | 5.2% | 10.0% |
| VGHCX Tax Cost Ratio | na | na | 1.6% | 2.0% | 1.9% | 2.0% |
VGHCX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VGHCX Return (NAV) | 4.4% | 17.3% | -1.6% | 5.4% | -1.1% | 14.3% | 12.6% | 22.9% | 1.2% | 19.6% | -9.0% |
| VGHCX Grade | D | C | F | C | A | B | F | D | C | D | B |
| +/- Category | -3.1% | -3.3% | -4.1% | -0.1% | 8.3% | 5.6% | -11.8% | -5.5% | 0.8% | -3.8% | 1.9% |
| Health Avg | 7.5% | 20.6% | 2.5% | 5.6% | -9.4% | 8.7% | 24.5% | 28.4% | 0.4% | 23.4% | -10.9% |
| Risk Measures | |
| Standard Deviation: | 13.8% |
| Total Risk Index: | 1.13 - Above Average |
| Category Risk Index: | 0.86 - Low |
| Category Risk Grade: | A (19% Rank) |
| Beta: | 0.53 |
| R-Squared: | 24% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 1.0% |
| Dividend Distribution: | |
| Cap Gains Distribution: | |
| Total Assets: | $36956 Mil |
| Fund Total Assets: | $5,197 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 47% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 3.1 years | |||
| Average Tenure: 3.1 years | |||
| Managers (Year): Sykes Rebecca (2023) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 115 |
| % in Top 10 Holdings: | 40.8% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 24.9% |
Portfolio Allocation |
|
| Domestic Stock: | 74.7% |
| Foreign Stock: | 24.9% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.5% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | May 23, 1984 |
| Min. Initial Purchase: | $3,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.33% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 1.21% |
| Share Class: | Vanguard Health Care Inv |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
