VGHCX Vanguard Health Care Fund Investor Shares

Also available at a lower cost as an Admiral™ Shares mutual fund.

Management style

Active

Asset class

Domestic Stock - Sector-Specific

Category

Health

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 5

Less

More

End of Risk Scale.

Expense ratio

0.35%

as of 05/24/2024

as of 12/31/2024

Investment minimum

$3,000

as of 01/17/2025

NAV price

$182.55

as of 01/17/2025

Overview

Key facts

CUSIP

921908307

Management style

Active

Asset class

Domestic Stock - Sector-Specific

Category

Health

Inception date

05/23/1984

Fund Number

0052

Ratings

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 5

Less

More

End of Risk Scale.
Price

Minimum Investment

$3,000

NAV Price

$182.55

as of 01/17/2025

NAV change

decreased-$1.63 (-0.89%)

as of 01/17/2025

Expense Ratio

0.35%

as of 05/24/2024

Performance

YTD returns

0.10%

as of 01/17/2025

Product summary

For more than 25 years, this actively managed fund has offered investors low-cost exposure to domestic and foreign companies involved in various aspects of the health care industry, such as pharmaceutical firms, medical supply companies, and research firms. The fund tends to be more geographically diverse and exhibit lower turnover than other health care funds. Still, one risk to note is the fund’s narrow scope, investing solely within the health care sector. Returns may vary widely from year to year, so this fund should be considered complementary to a diversified portfolio with a long-term time horizon.

Fund management

Wellington Management Company LLP

Performance & fees

Total returns
Month-end/Quarterly Pre-Tax Toggle

as of 12/31/2024

Recent returns

Average annual

Month-end3-Month totalYTD1-yr3-yr5-yr10-yr

Since inception

05/23/1984

VGHCX

-6.67%-12.31%-1.59%-1.59%0.88%5.73%7.26%14.84%

Benchmark

-5.90%-11.41%1.07%1.07%-0.58%5.81%7.01%10.36%

as of 12/31/2024

Year1st Qtr2nd Qtr3rd Qtr4th QtrYear-end

Benchmark

20245.07%3.05%3.64%-12.31%-1.59% 1.07%
2023-0.59%4.25%-4.60%6.64%5.43% 3.58%
2022-3.09%-5.57%-3.30%11.82%-1.05% -6.14%
2021-0.29%10.70%-1.23%4.84%14.30% 17.50%
2020-10.98%16.16%4.11%4.61%12.62% 14.87%
20197.91%-0.98%-1.53%16.84%22.93% 22.67%
20180.21%0.52%13.07%-11.18%1.15% 1.71%
201710.58%6.54%0.97%0.55%19.61% 20.14%
2016-8.84%5.42%0.71%-5.97%-8.99% -6.83%
20159.64%3.80%-8.90%8.65%12.65% 6.33%
20148.84%5.17%3.90%8.06%28.52% 18.13%

as of 12/31/2024

Year

Capital return by NAV

Income return by NAV

Total return by NAV

Benchmark

2024-2.47% 0.89%-1.59%1.07%
20234.58% 0.85%5.43%3.58%
2022-1.82% 0.76%-1.05%-6.14%
202113.36% 0.94%14.30%17.50%
202011.67% 0.95%12.62%14.87%
201921.58% 1.35%22.93%22.67%
20180.01% 1.15%1.15%1.71%
201718.46% 1.15%19.61%20.14%
2016-9.85% 0.86%-8.99%-6.83%
201511.39% 1.26%12.65%6.33%
201427.34% 1.17%28.52%18.13%
201341.43% 1.76%43.19%35.76%
201212.98% 2.13%15.11%17.77%
20119.55% 1.90%11.45%8.89%
20104.48% 1.68%6.16%5.44%
200919.23% 1.74%20.96%19.70%

as of 12/31/2024

1-yr3-yr5-yr10-yr

Since inception

05/23/1984

VGHCX-1.59% 2.67%32.15% 101.52% 27461.64%

Benchmark

1.07%-1.74%32.62%96.94%

Expense ratio

VGHCX

0.35%

Average expense ratio of similar funds2

1.01%

Historical volatility measures
as of 12/31/2024
BenchmarkR-Squared3Beta3
Spliced Health Care Index10.950.97
Dow Jones U.S. Total Stock Market Index0.530.56
Fund-specific fees

Purchase fee

None

Fund family redemption fee

None

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate so that investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.

Performance data do not reflect the deduction of the $25 annual account service fee that may be applied to certain accounts. If this fee was included, performance would be lower.

Price

Closing price

Closing price as of 01/17/2025

NAV

$182.55

NAV change

decreased-$1.63 (-0.89%)

52-week High

$238.25

as of 08/30/2024

52-week Low

$182.06

as of 12/30/2024

52-week Difference

$56.19 (30.86%)

30 day SEC yield

0.85%

 

B SEC yield footnote code

 

as of 12/31/2024

Historical prices
Chart/Table Toggle
NameDateNAV
VGHCX 01/17/2025
$182.55

This chart can’t be displayed on mobile devices. For the best viewing experience, visit this page from your desktop or laptop.

Portfolio composition

Characteristics

as of 12/31/2024

FundamentalVGHCX
Benchmark
Number of stocks 84 219
Median market cap $131.6 B $150.3 B
Earnings growth rate 7.0% 7.2%
Short-term reserves 1.5%
P/E ratio 26.2x 29.8x
P/B ratio 4.2x 4.2x
Turnover rate (Fiscal Year-end 01/31/2024) 16.3%
Return on equity 18.2% 20.0%
Foreign holdings 29.3%
Fund total net assets as of 12/31/2024 $40.5 B
Share class total net assets $6.2 B
Weighted exposures

as of 12/31/2024

21.00%Biotechnology
Sectors4VGHCX Benchmark Benchmark+/- Weight Biotechnology21.00%14.50%6.50%Health Care Distributors1.00%2.10%-1.10%Health Care Equipment11.60%16.80%-5.20%Health Care Facilities2.70%1.60%1.10%Health Care Services0.90%2.80%-1.90%Health Care Supplies1.00%3.00%-2.00%Health Care Technology0.20%0.60%-0.40%Life Sciences Tools & Services6.90%9.00%-2.10%Managed Health Care12.70%8.50%4.20%Pharmaceuticals42.10%41.10%1.00%

Weighted equity exposures exclude any temporary cash investments and equity index futures. Some short-term fixed income securities are classified as cash and are excluded from the weighted bond exposures.

Holding details

as of 09/30/2024

Ticker Holdings Shares Market value
LLY Eli Lilly & Co. 4,709,105 $4,171,984,484
UNH UnitedHealth Group Inc. 6,347,754 $3,711,404,809
AZN AstraZeneca plc 17,636,106 $2,747,465,549
MRK Merck & Co. Inc. 19,273,919 $2,188,746,242
NOVO B Novo Nordisk A/S Class B 16,015,062 $1,899,570,848
NOVN Novartis AG 14,193,639 $1,634,288,129
DHR Danaher Corp. 4,931,523 $1,371,062,024
PFE Pfizer Inc. 41,635,060 $1,204,918,636
ELV Anthem Inc. 2,238,250 $1,163,890,000
BSX Boston Scientific Corp. 13,757,254 $1,152,857,885
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
532457108
91324P102
58933Y105
K72807132
H5820Q150
235851102
717081103
036752103
101137107
Ticker Description Shares
LLY
UNH
AZN
MRK
NOVO B
NOVN
DHR
PFE
ELV
BSX
Ticker Holdings Shares Market value
LLY Eli Lilly & Co. 4,709,105 $4,171,984,484
UNH UnitedHealth Group Inc. 6,347,754 $3,711,404,809
AZN AstraZeneca plc 17,636,106 $2,747,465,549
MRK Merck & Co. Inc. 19,273,919 $2,188,746,242
NOVO B Novo Nordisk A/S Class B 16,015,062 $1,899,570,848
NOVN Novartis AG 14,193,639 $1,634,288,129
DHR Danaher Corp. 4,931,523 $1,371,062,024
PFE Pfizer Inc. 41,635,060 $1,204,918,636
ELV Anthem Inc. 2,238,250 $1,163,890,000
BSX Boston Scientific Corp. 13,757,254 $1,152,857,885
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
532457108
91324P102
58933Y105
K72807132
H5820Q150
235851102
717081103
036752103
101137107
Ticker Description Shares
LLY
UNH
AZN
MRK
NOVO B
NOVN
DHR
PFE
ELV
BSX
Ticker Holdings Shares Market value
LLY Eli Lilly & Co. 4,709,105 $4,171,984,484
UNH UnitedHealth Group Inc. 6,347,754 $3,711,404,809
AZN AstraZeneca plc 17,636,106 $2,747,465,549
MRK Merck & Co. Inc. 19,273,919 $2,188,746,242
NOVO B Novo Nordisk A/S Class B 16,015,062 $1,899,570,848
NOVN Novartis AG 14,193,639 $1,634,288,129
DHR Danaher Corp. 4,931,523 $1,371,062,024
PFE Pfizer Inc. 41,635,060 $1,204,918,636
ELV Anthem Inc. 2,238,250 $1,163,890,000
BSX Boston Scientific Corp. 13,757,254 $1,152,857,885
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
532457108
91324P102
58933Y105
K72807132
H5820Q150
235851102
717081103
036752103
101137107
Ticker Description Shares
LLY
UNH
AZN
MRK
NOVO B
NOVN
DHR
PFE
ELV
BSX

Distributions

Realized/Unrealized gains

as of 12/31/2024

Realized gain

$2.73

% of NAV

increased1.50%

Unrealized gains of NAV

$55.90

% of NAV

increased30.65%

Fiscal year end

01/31/2025

Distribution schedule

Annually

How your fund can affect your taxes

A fund's capital gains and losses can reveal the tax implications of holding a particular fund in a taxable account. This is true of both realized and unrealized capital gains and losses.

These tax implications don't apply to investors holding a fund in a tax-deferred account, such as an IRA or employer-sponsored retirement plan.

Learn about realized and unrealized gains and losses

How your fund can affect your taxes

A fund's capital gains and losses can reveal the tax implications of holding a particular fund in a taxable account. This is true of both realized and unrealized capital gains and losses.

These tax implications don't apply to investors holding a fund in a tax-deferred account, such as an IRA or employer-sponsored retirement plan.

Learn about realized and unrealized gains and losses
Dividend income and capital gains
Type$/Share Payable date Record date Reinvest date Reinvest price
Dividend$1.68980012/23/202412/19/202412/20/2024$182.07
ST Cap Gain$0.81398312/23/202412/19/202412/20/2024$182.07
LT Cap Gain$15.13802812/23/202412/19/202412/20/2024$182.07
Dividend$0.11900003/28/202403/26/202403/27/2024$214.06
ST Cap Gain$1.10844003/28/202403/26/202403/27/2024$214.06
LT Cap Gain$4.93024203/28/202403/26/202403/27/2024$214.06
Dividend$1.67280012/28/202312/26/202312/27/2023$208.98
ST Cap Gain$0.34240912/28/202312/26/202312/27/2023$208.98
LT Cap Gain$6.23767112/28/202312/26/202312/27/2023$208.98

Fund management

Vanguard Health Care Fund seeks long-term capital appreciation by investing in stocks broadly representing the health care industry. The advisor seeks to maintain exposure across five primary subsectors: health services, medical products, specialty pharmaceuticals, major pharmaceuticals, and international markets. Fundamental research focuses on companies with high-quality balance sheets, strong management, and the potential for new products that will lead to above-average growth in revenue and earnings. Reflecting the advisor’s contrarian style, stocks may be purchased after negative events have caused a decline in share price. Assets are usually concentrated in the top ten holdings, but the fund remains invested across both subsectors and market capitalizations. Because of the industry’s long product-development cycle, the advisor pursues a long-term investment approach that has resulted in below-average turnover. The fund historically has been more geographically diversified than other health care sector funds.

Wellington Management Company LLP
Founded in 1928, Wellington Management Company LLP, Boston, Massachusetts, is among the nation’s oldest and most respected institutional investment managers. The firm has advised Vanguard Health Care Fund since 1984.

Investment Manager Biography

Rebecca Sykes
CFA, Portfolio manager.
Advised the fund since 2023. Worked in investment management since 2005. B.S., University of Pennsylvania. M.B.A., The Wharton School of the University of Pennsylvania.

Investing in the future of health care

Portfolio Manager Jean Hynes describes the fund’s long-term investment approach and the team of experts who help her identify emerging health care trends and opportunities.
Portrait of Jean Hynes
View transcriptVideo length: 2:34

Performance & fees

1
S&P 500 Index through December 31, 2001; S&P Health Care Index through May 31, 2010; MSCI All Country World Health Care Index thereafter.
2

Most recent data available. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) does not constitute investment advice offered by Morningstar; and (4) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

3

R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

Portfolio composition

4

Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Vanguard average mutual fund expense ratio: 0.09%. Industry average mutual fund expense ratio: 0.50%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.

Total returns: Short-term total return information is provided only as a service. Historical performance—particularly short-term performance—is no guarantee of future returns. Price, yield, and return on an actual investment will fluctuate, and you may have a gain or loss when you sell. Average annual returns include changes in price and reinvestments of dividends and capital gains. Since-inception returns for less than 1 year and year-to-date returns aren't annualized. Index performance is provided as a benchmark but isn't illustrative of any particular investment. You can't invest in an index.

Standardized returns: To see quarterly fee-adjusted returns, refer to the Price & Performance details.

Expense ratios: Expense ratios are displayed on Overview. For investments that are less than 1 fiscal year old, expense ratios are estimated.

Risk: All investing is subject to risk, including the possible loss of the money you invest. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

An investment in the fund could lose money over short or long periods of time. You should expect the fund’s share price and total return to fluctuate within a wide range. The fund is subject to the following risks, which could affect the fund’s performance:

  • Industry concentration risk, which is the chance that there will be particular problems affecting an entire industry. Any fund that concentrates in a particular industry will generally be more volatile than a fund that invests more broadly. Because the fund normally invests at least 80% of its assets in the stocks of companies related to the health care industry, the fund’s performance largely depends—for better or for worse—on the overall condition of this industry. The health care industry could be adversely affected by various political, regulatory, supply-and-demand, and other economic factors.
  • Stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. The fund’s investments in foreign stocks can be riskier than U.S. stock investments. Foreign stocks may be more volatile and less liquid than U.S. stocks. The prices of foreign stocks and the prices of U.S. stocks may move in opposite directions.
  • Asset concentration risk, which is the chance that, because the fund tends to invest a high percentage of assets in its ten largest holdings, the fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks.
  • Manager risk, which is the chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.
  • Country risk, which is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries.
  • Currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.
  • Nondiversification risk, which is the chance that the fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks or even a single stock. The fund is considered nondiversified, which means that it may invest a greater percentage of its assets in the securities of particular issuers as compared with diversified mutual funds.