IVV vs VDIGX
iShares Core S&P 500 ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.22% | |
| AUM | $865.2B | $36.4B | |
| Dividend Yield | 1.09% | 1.87% | |
| Holdings | 508 | 55 | |
| YTD Return | +13.43% | -0.12% | |
| 1Y Return | +22.61% | -8.96% | |
| 3Y Return (annualized) | +21.47% | -3.11% | |
| 5Y Return (annualized) | +13.26% | -2.91% | |
| Volatility (annualized) | 15.1% | 16.1% | |
| Max Drawdown | -56.5% | -32.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | May 15, 1992 |
IVV vs VDIGX Performance
iShares Core S&P 500 ETF (IVV) is a 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 +22.61% while VDIGX returned -8.96%. Year to date, IVV is up 13.43% versus a loss of 0.12% for VDIGX.
Over three years, IVV compounded at +21.47% per year against -3.11% for VDIGX; over five years the annualized figures are +13.26% and -2.91% respectively. Across the full 5-year window we track, IVV has the edge at +7.03% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.1% 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 -56.5% for IVV and -32.6% for VDIGX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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 0.22%. On a $10,000 position that is $3 vs $22 annually, a gap of $19 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.87% for VDIGX.
Holdings Overlap
IVV and VDIGX share 44 holdings out of 508 unique holdings combined, representing a 27.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VDIGX?
IVV has an expense ratio of 0.03% while VDIGX charges 0.22%. IVV is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IVV or VDIGX?
Over the past year IVV returned +22.61% vs -8.96% for VDIGX, so IVV leads on 1-year performance. Over the longest common window we track (5 years), IVV annualized +7.03% vs -2.91% for VDIGX. Past performance does not guarantee future results.
Which is riskier, IVV or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VDIGX -32.6%.
Should I hold both IVV and VDIGX?
IVV and VDIGX have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VDIGX?
IVV and VDIGX share 44 common holdings with a 27.1% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, IVV or VDIGX?
IVV yields 1.09% while VDIGX yields 1.87%, so VDIGX currently pays the higher dividend yield.
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