VHT

📎 Investment Objective

The Vanguard Health Care ETF seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index, which measures the investment return of health care stocks in the U.S. equity market.

✨ Key Features

• Provides broad exposure to the U.S. healthcare sector, including pharmaceutical, biotechnology, and medical device companies
• Diversified portfolio with holdings across different healthcare sub-industries
• Low expense ratio of 0.00% makes it a cost-effective way to gain healthcare sector exposure
• Tracks a market-cap-weighted index, providing exposure proportional to the size of the underlying companies

⚠️ Primary Risks

• Sector-specific risk: As a sector-focused fund, it is subject to risks inherent to the healthcare industry, such as regulatory changes, patent expirations, and pricing pressures
• Market risk: The value of the fund's holdings can fluctuate with overall stock market movements
• Concentration risk: The fund's performance is heavily tied to the healthcare sector, which may underperform the broader market at times
• Tracking error risk: The fund may not perfectly track its underlying index due to factors such as fund expenses and cash flows

👤 Best For

The Vanguard Health Care ETF may be suitable for investors seeking long-term exposure to the U.S. healthcare sector as part of a diversified portfolio. It can be particularly appealing to investors with a higher risk tolerance who are looking for a cost-effective way to gain broad healthcare sector exposure.