Vanguard Health Care Fund's Strategic Moves: Johnson & Johnson Takes Center Stage with 2. ...
Vanguard Health Care Fund (Trades, Portfolio) recently submitted its N-PORT filing for the second quarter of 2025, shedding light on its strategic investment decisions during this period. Managed by Jean M. Hynes, CFA, CEO of Wellington Management Company, the fund is renowned for its focus on long-term capital appreciation within the health care sector. Wellington Management Company, established in 1928, is one of the oldest and most respected institutional investment managers in the United States, advising the Vanguard Health Care Fund (Trades, Portfolio) since 1984. The fund aims to maintain a diversified exposure across five primary subsectors: health services, medical products, specialty pharmaceuticals, major pharmaceuticals, and international markets. Its investment philosophy emphasizes companies with robust balance sheets, strong management, and potential for innovative products that could drive above-average growth in revenue and earnings. The fund's contrarian style often leads to purchasing stocks after negative events have caused a decline in share price.
Summary of New Buy
Vanguard Health Care Fund (Trades, Portfolio) added a total of eight stocks, with the most significant addition being Johnson & Johnson (NYSE:JNJ). The fund acquired 4,660,244 shares, which now account for 2.05% of the portfolio, with a total value of $711.85 million. The second largest addition was Roche Holding AG (XSWX:ROG), consisting of 1,677,044 shares, representing approximately 1.58% of the portfolio, with a total value of CHF 547,420,130. The third largest addition was Gilead Sciences Inc (NASDAQ:GILD), with 4,823,087 shares, accounting for 1.54% of the portfolio and a total value of $534.74 million.
Key Position Increases
Vanguard Health Care Fund (Trades, Portfolio) also increased stakes in a total of 16 stocks. The most notable increase was in Elevance Health Inc (NYSE:ELV), with an additional 507,005 shares, bringing the total to 1,700,286 shares. This adjustment represents a significant 42.49% increase in share count, a 0.57% impact on the current portfolio, with a total value of $661.34 million. The second largest increase was in Cencora Inc (NYSE:COR), with an additional 501,886 shares, bringing the total to 2,279,215. This adjustment represents a significant 28.24% increase in share count, with a total value of $683.42 million.
Summary of Sold Out
Vanguard Health Care Fund (Trades, Portfolio) completely exited 12 holdings in the second quarter of 2025. Notable exits include Blueprint Medicines Corp (BPMC), where the fund sold all 1,362,970 shares, resulting in a -0.32% impact on the portfolio. Another significant exit was Surgery Partners Inc (NASDAQ:SGRY), with the liquidation of all 4,602,252 shares, causing a -0.29% impact on the portfolio.
Key Position Reduces
Vanguard Health Care Fund (Trades, Portfolio) also reduced its position in 45 stocks. The most significant changes include a reduction in Novartis AG (XSWX:NOVN) by 5,691,220 shares, resulting in a -49.44% decrease in shares and a -1.66% impact on the portfolio. The stock traded at an average price of CHF 93.19 during the quarter and has returned 8.24% over the past three months and 13.88% year-to-date. Another notable reduction was in Edwards Lifesciences Corp (NYSE:EW) by 6,663,224 shares, resulting in a -37.32% reduction in shares and a -1.27% impact on the portfolio. The stock traded at an average price of $74.55 during the quarter and has returned 2.89% over the past three months and 4.93% year-to-date.
Portfolio Overview
As of the second quarter of 2025, Vanguard Health Care Fund (Trades, Portfolio)'s portfolio included 81 stocks. The top holdings included 10.78% in Eli Lilly and Co (NYSE:LLY), 6.49% in AstraZeneca PLC (LSE:AZN), 5.56% in UnitedHealth Group Inc (NYSE:UNH), 4.52% in Merck & Co Inc (NYSE:MRK), and 4.35% in Boston Scientific Corp (NYSE:BSX). The holdings are mainly concentrated in one of the 11 industries: Healthcare.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
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