VBR vs VDIGX
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Dividend Growth Fund Investor Class
Which is better, VBR or VDIGX?
Small Cap Value against Large Cap Blend.
VBR has a lower expense ratio. VBR led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% 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 | VBR | VDIGX |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.20% |
| AUM | $37.3B | $35.5B |
| Dividend Yield | 1.76% | 23.10% |
| Holdings | 847 | 62 |
| YTD Price Return | +10.88%Best | -3.99% |
| 1Y Price Return | +12.30%Best | -14.10% |
| 3Y Price Return (annualized) | +13.22%Best | -3.79% |
| 5Y Price Return (annualized) | +7.32%Best | -3.26% |
| Volatility (annualized) | 18.7% | 16.0%Best |
| Max Drawdown | -25.1%Best | -32.6% |
| $10,000 over 5 years | $14,237Best | $8,473 |
| Top 10 Weight | 5.9%Best | 38.2% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Jan 26, 2004 | 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. VBR yields 1.76% and VDIGX 23.10% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VBR 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.
VBR vs VDIGX Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an 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 +12.30% while VDIGX returned -14.10%. Year to date, VBR is up 10.88% versus a loss of 3.99% for VDIGX.
Over three years, VBR compounded at +13.22% per year against -3.79% for VDIGX; over five years the annualized figures are +7.32% and -3.26% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 16.0% 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 -25.1% for VBR 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 0.73. 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 0.20%. On a $10,000 position that is $5 vs $20 annually, a gap of $15 per year that compounds over a long holding period. On income, VBR currently yields 1.76% against 23.10% for VDIGX.
Structure and taxes
VDIGX is a mutual fund and VBR 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
We hold position weights for 836 holdings in VBR and 51 in VDIGX, totalling 99.4% and 99.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 836 positions we hold weights for in VBR and 51 in VDIGX, against full books of 847 and 62.
What only one of them owns
Our book lists 49 positions for VDIGX that do not appear in our book for VBR (97.1% of the fund), and 802 for VBR that do not appear in VDIGX (96.6%).
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.
You are not choosing between two funds in isolation.
Whichever of VBR and VDIGX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBR or VDIGX?
VBR has an expense ratio of 0.05% while VDIGX charges 0.20%. VBR is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, VBR or VDIGX?
Over the past year VBR returned +12.30% vs -14.10% for VDIGX, so VBR leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or VDIGX?
VBR has been the more volatile fund at 18.7% annualized versus 16.0% for VDIGX. Worst drawdown: VBR -25.1% vs VDIGX -32.6%.
Should I hold both VBR and VDIGX?
VBR and VDIGX have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VBR or VDIGX?
VBR yields 1.76% while VDIGX yields 23.10%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VBR in a taxable account?
VBR 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 VBR?
VBR has a lower expense ratio. VBR led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% 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.