4-Star ETFs Poised to Pop: Vanguard Health Care
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Health Care ETF (NYS: VHT) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Vanguard Health Care and see what CAPS investors are saying about the ETF right now.
Vanguard Health Care facts
Inception | January 2004 |
Total Assets | $670.2 million |
Investment Approach | Seeks to track the performance of the MSCI US Investable Market Health Care 25/50 Index, which includes stocks of U.S. companies in the health-care sector. |
Expense Ratio | 0.24% |
Dividend Yield | 1.7% |
1-Year / 3-Year / 5-Year Annual Returns | 10% / 12.9% / 2.6% |
Best YTD Performers Among Top 10 Holdings | UnitedHealth Group (NYS: UNH) (+37%) Bristol-Myers Squibb (NYS: BMY) (+28%) Abbott Labs (NYS: ABT) (+15%) |
Alternatives | iShares Dow Jones US Healthcare (NYS: IYH) iShares S&P Global Healthcare (NYS: IXJ) |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 96% of the 140 members who have rated Vanguard Health Care believe the ETF will outperform the S&P 500 going forward. These bulls include GreatorGator and dumberthanafool.
Last year, GreatorGator tapped the ETF as a healthy way to diversify:
Health Care is a beaten down industry that should fare far better in the future. Tough to pinpoint which company will profit from the next big thing. ETF allows us to own a piece of everything.
Vanguard Health Care, in particular, sports an expense ratio of 0.24%. That's lower than other health care ETF plays like iShares Dow Jones US Healthcare (0.47%) and iShares SP Global Healthcare (0.48%).
CAPS member dumberthanafool elaborates on the bull case:
[B]y investing in VHT I can greatly diversify my health care exposure, while still maintaining my bet on the investment future of the health care industry in this country, which is based on its current relative low valuation, and the not-original idea that baby boomers are going to consume a lot of health care. VHT is probably the best way to bet on that, unless one is a genius stock-picker, which I have increasingly begun to suspect I am not.
What do you think about Vanguard Health Care, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track theVanguard Health Care?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of UnitedHealth Group and Abbott Labs. Motley Fool newsletter services have recommended buying shares of UnitedHealth and Abbott, as well as creating a diagonal call position in UnitedHealth. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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