VBK vs VDIGX
VBK vs VDIGX
Vanguard Small Cap Growth ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
VBK has a lower expense ratio. VBK delivered stronger 1-year returns. VBK offers more diversification with 542 holdings.
Side-by-Side Comparison
| Metric | VBK | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.22% | |
| AUM | $24.8B | $36.4B | |
| Dividend Yield | 0.57% | 1.87% | |
| Holdings | 561 | 55 | |
| YTD Return | +17.71% | -0.21% | |
| 1Y Return | +29.45% | -8.99% | |
| 3Y Return (annualized) | +16.91% | -3.09% | |
| 5Y Return (annualized) | +5.29% | -2.76% | |
| Volatility (annualized) | 19.6% | 16.1% | |
| Max Drawdown | -59.4% | -32.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | May 15, 1992 |
VBK vs VDIGX Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year VBK returned +29.45% while VDIGX returned -8.99%. Year to date, VBK is up 17.71% versus a loss of 0.21% for VDIGX.
Over three years, VBK compounded at +16.91% per year against -3.09% for VDIGX; over five years the annualized figures are +5.29% and -2.76% respectively. Across the full 5-year window we track, VBK has the edge at +9.41% annualized vs -2.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 16.1% for VDIGX. 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 -59.4% for VBK 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBK charges 0.05% per year while VDIGX charges 0.22%. On a $10,000 position that is $5 vs $22 annually, a gap of $17 per year that compounds over a long holding period. On income, VBK currently yields 0.57% against 1.87% for VDIGX.
Holdings Overlap
VBK and VDIGX share 0 holdings out of 589 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or VDIGX?
VBK has an expense ratio of 0.05% while VDIGX charges 0.22%. VBK is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VBK or VDIGX?
Over the past year VBK returned +29.45% vs -8.99% for VDIGX, so VBK leads on 1-year performance. Over the longest common window we track (5 years), VBK annualized +9.41% vs -2.76% for VDIGX. Past performance does not guarantee future results.
Which is riskier, VBK or VDIGX?
VBK has been the more volatile fund at 19.6% annualized versus 16.1% for VDIGX. Worst drawdown: VBK -59.4% vs VDIGX -32.6%.
Should I hold both VBK and VDIGX?
VBK and VDIGX have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VDIGX?
VBK and VDIGX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.
Which pays a higher dividend, VBK or VDIGX?
VBK yields 0.57% while VDIGX yields 1.87%, so VDIGX currently pays the higher dividend yield.
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