Vanguard's low-cost mutual funds and exchange-traded funds (ETFs) have democratized wealth creation, making it simple for everyday investors to build diversified portfolios while retaining a bigger chunk of their investment returns.
If you're new to investing, a great place to start is the Vanguard S&P 500 ETF (VOO 1.08%), which tracks all the stocks within the S&P 500 and aims to replicate the index's performance over time. But if you already have exposure to the broader market through VOO or its even more diversified sibling, the Vanguard Total Stock Market ETF (VTI 1.21%), there's another Vanguard ETF you might consider adding in 2026.
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Healthcare stocks are showing signs of life
The Vanguard Health Care ETF (VHT 1.49%) aims to mirror the performance of a benchmark index comprising more than 400 healthcare stocks. Over the past five years, VHT has lagged the S&P 500's total return by a country mile. But over the past six months, VHT has outperformed the S&P 500, suggesting that healthcare stocks are on the mend.
Data by YCharts.
With the bull market now into its fourth year, some pundits say it is due for a pullback. While nobody can predict what stocks will do in the short term, having some exposure to a defensive sector like healthcare could be ballast for your portfolio if economic conditions get dicey. People need healthcare regardless of what's going on in the stock market or the economy.
But healthcare isn't just a defensive play. One of healthcare's biggest tailwinds is the robust adoption of weight-loss drugs. Eli Lilly -- VHT's biggest holding -- has several GLP-1 medications that generate billions of dollars in annual revenue, and have more in the pipeline. Morgan Stanley analysts estimate that the global market for obesity drugs could reach $150 billion in sales by 2035, up from $15 billion in 2024.
NYSEMKT: VHT
Key Data Points
VHT is up 2% so far in 2026, as of this writing. If you're looking for some diversification in a tech-heavy portfolio, this Vanguard ETF could be just what the doctor ordered.
