The U.S. stock market continues to rally significantly, sending major indices to new highs as semiconductor and tech stocks dominate the headlines, largely driven by the booming growth of artificial intelligence (AI). However, beneath this euphoria, a growing chorus of analysts and economists fears that this rally is more likely a high-stakes speculative bubble and a market correction might occur soon. This might turn the attention of investors toward Exchange-Traded Funds (ETFs), especially defensive secto ...

Core Viewpoint - The Vanguard Health Care ETF (VHT) is a passively managed ETF that provides broad exposure to the healthcare sector, appealing to both retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][3]. Fund Overview - VHT was launched on January 26, 2004, and has accumulated over $14.94 billion in assets, making it one of the largest ETFs in the healthcare sector [3]. - The ETF aims to match the performance of the MSCI US Investable Market Health Care 25/50 Index, which includes stocks of U.S. companies in the healthcare sector [3]. Cost Structure - The annual operating expenses for VHT are 0.09%, positioning it as one of the least expensive options in the market [4]. - The ETF has a 12-month trailing dividend yield of 1.65% [4]. Sector Exposure and Holdings - VHT offers nearly 100% allocation in the healthcare sector, with Eli Lilly & Co (LLY) making up approximately 11.05% of total assets, followed by UnitedHealth Group Inc (UNH) and AbbVie Inc (ABBV) [5]. Performance Metrics - Year-to-date, VHT has experienced a loss of about 4.02%, and it is down approximately 9.09% over the last 12 months as of August 7, 2025 [6]. - The ETF has traded between $236.71 and $288.1 in the past 52 weeks, with a beta of 0.65 and a standard deviation of 14.28% over the trailing three-year period, indicating medium risk [6]. Investment Alternatives - VHT holds a Zacks ETF Rank of 1 (Strong Buy), based on expected asset class return, expense ratio, and momentum, making it a strong option for investors seeking healthcare sector exposure [7]. - Other alternatives include the iShares Global Healthcare ETF (IXJ) and the Health Care Select Sector SPDR ETF (XLV), with IXJ having $3.63 billion in assets and XLV having $32.12 billion [8][9].