VCSH vs VDIGX
Vanguard Short Term Corporate Bond ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
VCSH has a lower expense ratio. VCSH delivered stronger 1-year returns. VCSH offers more diversification with 2,719 holdings.
Side-by-Side Comparison
| Metric | VCSH | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.22% | |
| AUM | $44.9B | $36.4B | |
| Dividend Yield | 4.44% | 1.87% | |
| Holdings | 2,719 | 55 | |
| YTD Return | +0.86% | -0.46% | |
| 1Y Return | +2.85% | -10.04% | |
| 3Y Return (annualized) | +5.57% | -3.25% | |
| 5Y Return (annualized) | +2.33% | -3.17% | |
| Volatility (annualized) | 2.6% | 16.1% | |
| Max Drawdown | -12.9% | -32.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | May 15, 1992 |
VCSH vs VDIGX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) 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 VCSH returned +2.85% while VDIGX returned -10.04%. Year to date, VCSH is up 0.86% versus a loss of 0.46% for VDIGX.
Over three years, VCSH compounded at +5.57% per year against -3.25% for VDIGX; over five years the annualized figures are +2.33% and -3.17% respectively. Across the full 5-year window we track, VCSH has the edge at +1.29% annualized vs -3.17%. 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 2.6% for VCSH. 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 -12.9% for VCSH 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH 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, VCSH currently yields 4.44% against 1.87% for VDIGX.
Holdings Overlap
VCSH and VDIGX share 0 holdings out of 2487 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, VCSH or VDIGX?
VCSH has an expense ratio of 0.03% while VDIGX charges 0.22%. VCSH is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VCSH or VDIGX?
Over the past year VCSH returned +2.85% vs -10.04% for VDIGX, so VCSH leads on 1-year performance. Over the longest common window we track (5 years), VCSH annualized +1.29% vs -3.17% for VDIGX. Past performance does not guarantee future results.
Which is riskier, VCSH or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VDIGX -32.6%.
Should I hold both VCSH and VDIGX?
VCSH and VDIGX have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VDIGX?
VCSH and VDIGX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2487 unique securities.
Which pays a higher dividend, VCSH or VDIGX?
VCSH yields 4.44% while VDIGX yields 1.87%, so VCSH currently pays the higher dividend yield.
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