Vanguard (VHT) Vs. Simplify (PINK): Which Healthcare ETF Is the Better Buy for Investors?
Key Points
Vanguard Health Care ETF offers a much lower expense ratio and a higher trailing dividend yield than Simplify Health Care ETF.
Simplify Health Care ETF focuses on innovative biotech and medtech via an active management strategy that donates net profits to breast cancer research.
While Simplify Health Care ETF achieved higher one-year total returns, Vanguard Health Care ETF provides broader exposure across 411 different holdings.
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The Simplify Health Care ETF (NYSEMKT:PINK) provides active management and thematic growth exposure, while the Vanguard Health Care ETF (NYSEMKT:VHT) offers broad-market diversification at a significantly lower cost.
Both funds target the healthcare sector but employ different methodologies. VHT is a passive index fund that provides broad exposure to the domestic industry, while PINK is an actively managed fund that targets groundbreaking innovation and donates its net profits to the Susan G. Komen Foundation.
Snapshot (cost & size)
| Metric | PINK | VHT |
|---|---|---|
| Issuer | Simplify | Vanguard |
| Expense ratio | 0.51% | 0.09% |
| 1-yr return (as of May 29, 2026) | 33.12% | 15.38% |
| Dividend yield | 0.72% | 1.72% |
| Beta | 0.80 | 0.64 |
| AUM | $241.3 million | $18.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors may prefer the Vanguard fund, which charges a 0.09% expense ratio, well below the 0.51% charged by the Simplify fund. Furthermore, VHT provided a higher payout for income-seekers, with a trailing 12-month dividend yield of 1.72% compared to 0.72% for PINK.
Performance & risk comparison
| Metric | PINK | VHT |
|---|---|---|
| Max drawdown (4 yr) | (18.80%) | (16.90%) |
| Growth of $1,000 over 4 years (total return) | $1,500.00 | $1,211.00 |
What's inside
The Vanguard Health Care ETF targets 100% healthcare exposure across 411 holdings, providing a comprehensive view of the sector. Its largest positions include Eli Lilly & Co at 12.15%, Johnson & Johnson at 8.84%, and AbbVie Inc at 6.04%. The Vanguard fund was launched in 2004 and has a trailing-12-month dividend of $4.70 per share. This passive strategy typically aims to fully replicate its target index to provide consistent market-cap-weighted exposure.
In contrast, the Simplify Health Care ETF holds 58 positions and tilts toward healthcare at 93% and industrials at 7%. Its largest positions include Purecycle Technologies at 10.26%, United Therapeutics Corp at 7.33%, and Novo Nordisk at 6.67%. Launched in 2021, the Simplify fund is unique in its social mission as a pro bono ETF and has a trailing-12-month dividend of $0.25 per share. It uses active management to identify innovative companies in biotech and gene therapy.
For more guidance on ETF investing, check out the full guide at this link.
Which ETF is the better buy?
Since the Vanguard Health Care ETF (VHT) debuted in 2004, it has compounded total returns of 9.5% annually, a respectable figure. However, the newcomer (and actively managed) Simplify Health Care ETF (PINK) burst onto the scene in 2022 and has consistently outperformed VHT since then.
The upstart PINK ETF may charge an expense ratio that is five times higher than VHT’s, but it is managed “pro bono,” and donates 100% of its net profits to the Susan G. Komen foundation. As of September 2025, PINK had donated $350,000 to the foundation, so a decent chunk of its expense fee essentially goes to Susan G. Komen.
While this differentiation has me leaning toward PINK, I would personally buy it; most investors probably need to weigh whether they prefer VHT’s passive management style or the former’s active management. In addition to its passive investing, VHT also offers a lower beta, smaller drawdowns, a higher dividend yield, broader diversification, and a much larger asset base, making it a better option for risk-averse or income-seeking investors.
Ultimately, I think both ETFs are great options, but for very different reasons, so it is entirely a matter of individual preference for an investor. PINK might be more of a “swing for the fences” type of investment (with a great cause, to boot), while VHT should be undeniably steady as it holds virtually all of the healthcare heavyweights.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, and United Therapeutics. The Motley Fool recommends Johnson & Johnson and Novo Nordisk. The Motley Fool has a disclosure policy.
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