VBR vs VDIGX
Vanguard Small Cap Value ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
VBR has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 809 holdings.
Side-by-Side Comparison
| Metric | VBR | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.22% | |
| AUM | $36.9B | $36.4B | |
| Dividend Yield | 2.23% | 1.87% | |
| Holdings | 853 | 55 | |
| YTD Return | +17.62% | -0.12% | |
| 1Y Return | +28.72% | -8.96% | |
| 3Y Return (annualized) | +16.07% | -3.11% | |
| 5Y Return (annualized) | +9.64% | -2.91% | |
| Volatility (annualized) | 19.0% | 16.1% | |
| Max Drawdown | -64.0% | -32.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | May 15, 1992 |
VBR vs VDIGX Performance
Vanguard Small Cap Value ETF (VBR) 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 VBR returned +28.72% while VDIGX returned -8.96%. Year to date, VBR is up 17.62% versus a loss of 0.12% for VDIGX.
Over three years, VBR compounded at +16.07% per year against -3.11% for VDIGX; over five years the annualized figures are +9.64% and -2.91% respectively. Across the full 5-year window we track, VBR has the edge at +8.02% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR 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, VBR currently yields 2.23% against 1.87% for VDIGX.
Holdings Overlap
VBR and VDIGX share 0 holdings out of 856 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, VBR or VDIGX?
VBR has an expense ratio of 0.05% while VDIGX charges 0.22%. VBR is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VBR or VDIGX?
Over the past year VBR returned +28.72% vs -8.96% for VDIGX, so VBR leads on 1-year performance. Over the longest common window we track (5 years), VBR annualized +8.02% vs -2.91% for VDIGX. Past performance does not guarantee future results.
Which is riskier, VBR or VDIGX?
VBR has been the more volatile fund at 19.0% annualized versus 16.1% for VDIGX. Worst drawdown: VBR -64.0% vs VDIGX -32.6%.
Should I hold both VBR and VDIGX?
VBR and VDIGX have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VDIGX?
VBR and VDIGX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 856 unique securities.
Which pays a higher dividend, VBR or VDIGX?
VBR yields 2.23% while VDIGX yields 1.87%, so VBR currently pays the higher dividend yield.
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