Vanguard Health Care Fund

Overview

Vanguard Health Care Fund is an actively managed mutual fund that seeks long-term capital appreciation by investing in a diversified portfolio of healthcare companies. The fund primarily focuses on sectors such as pharmaceuticals, biotechnology, medical equipment, and health services, aiming to provide investors with exposure to various facets of the healthcare industry. The fund employs a fundamental research approach, selecting companies with strong financial health, effective management, and promising product pipelines that are expected to drive above-average revenue and earnings growth. It maintains a diversified portfolio across different subsectors and market capitalizations, with assets often concentrated in the top ten holdings. The investment strategy is contrarian, purchasing stocks that have declined in price due to negative events, anticipating a recovery as the market adjusts. Historically, the fund has demonstrated a long-term investment approach, resulting in below-average turnover compared to other healthcare sector funds. It has also been more geographically diversified, investing up to 50% of its assets in foreign stocks, allowing it to capture opportunities in global drug development and medical technology markets. This strategy reflects Vanguard's commitment to providing investors with comprehensive exposure to the healthcare sector, balancing both domestic and international opportunities.

Investment Focus

• Minimum initial investment: $3,000 for Investor Shares; $50,000 for Admiral Shares
• Subsequent investments: $100 for Investor Shares; $1 for Admiral Shares
• Expense ratio: 0.37% as of May 29, 2025

Portfolio Companies