IVV vs VDIGX
iShares Core S&P 500 ETF vs Vanguard Dividend Growth Fund Investor Class
Which is better, IVV or VDIGX?
IVV has been ahead.
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IVV is less concentrated, with 37.8% of the fund in its ten largest positions against 38.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | VDIGX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.20% |
| AUM | $876.4B | $35.5B |
| Dividend Yield | 1.06% | 23.10% |
| Holdings | 508 | 62 |
| YTD Price Return | +13.21%Best | -3.99% |
| 1Y Price Return | +15.94%Best | -14.10% |
| 3Y Price Return (annualized) | +21.41%Best | -3.79% |
| 5Y Price Return (annualized) | +12.20%Best | -3.37% |
| Volatility (annualized) | 15.8%Best | 16.0% |
| Max Drawdown | -25.4%Best | -32.6% |
| $10,000 over 5 years | $17,781Best | $8,425 |
| Top 10 Weight | 37.8%Best | 38.2% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 2000 | May 15, 1992 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VDIGX. Both funds are measured the same way, so the comparison holds. IVV yields 1.06% and VDIGX 23.10% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
IVV vs VDIGX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
IVV vs VDIGX Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year IVV returned +15.94% while VDIGX returned -14.10%. Year to date, IVV is up 13.21% versus a loss of 3.99% for VDIGX.
Over three years, IVV compounded at +21.41% per year against -3.79% for VDIGX; over five years the annualized figures are +12.20% and -3.37% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.8% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -25.4% for IVV and -32.6% for VDIGX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VDIGX charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, IVV currently yields 1.06% against 23.10% for VDIGX.
Structure and taxes
VDIGX is a mutual fund and IVV is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
35.0% of IVV's money is in holdings VDIGX also owns. 95.4% of VDIGX's money is in holdings IVV also owns.
Most of VDIGX is already inside IVV. Owning both mostly buys the same companies twice.
The two holdings books were reported 62 days apart, IVV as of Aug 31, 2026 and VDIGX as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
48 positions in common, counted across the 490 positions we hold weights for in IVV and 51 in VDIGX, against full books of 508 and 62.
What only one of them owns
Our book lists 1 positions for VDIGX that do not appear in our book for IVV (1.7% of the fund), and 434 for IVV that do not appear in VDIGX (63.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IVV | Weight in VDIGX | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.02% | 3.43% | 3.59% |
| MSFTMicrosoft Corp | 5.69% | 4.62% | 1.07% |
| AVGOBroadcom Inc | 2.65% | 5.73% | 3.08% |
| LLYEli Lilly & Co. | 1.38% | 5.10% | 3.72% |
| GOOGLAlphabet Inc,class A | 3.00% | 1.49% | 1.51% |
| MAMastercard Inc | 0.72% | 3.56% | 2.84% |
| VVisa Inc Class A | 0.95% | 3.23% | 2.28% |
| KLACKla Corp | 0.35% | 3.71% | 3.36% |
| TXNTexas Instrument Inc | 0.36% | 3.54% | 3.18% |
| MRKMerck & Company Inc | 0.55% | 2.64% | 2.09% |
95.4% of VDIGX is already inside IVV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IVV or VDIGX?
IVV has an expense ratio of 0.03% while VDIGX charges 0.20%. IVV is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, IVV or VDIGX?
Over the past year IVV returned +15.94% vs -14.10% for VDIGX, so IVV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or VDIGX?
VDIGX has been the more volatile fund at 16.0% annualized versus 15.8% for IVV. Worst drawdown: IVV -25.4% vs VDIGX -32.6%.
Should I hold both IVV and VDIGX?
IVV and VDIGX have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IVV and VDIGX?
95.4% of VDIGX's money is in holdings IVV also owns. 95.4% of VDIGX's is in holdings IVV also owns. They hold 48 positions in common, counted across the 490 positions we hold weights for in IVV and 51 in VDIGX.
Which pays a higher dividend, IVV or VDIGX?
IVV yields 1.06% while VDIGX yields 23.10%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or IVV in a taxable account?
IVV is an ETF and VDIGX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VDIGX better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IVV is less concentrated, with 37.8% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.