VDIGX vs VEU
Vanguard Dividend Growth Fund Investor Class vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.04% | |
| AUM | $36.4B | $67.3B | |
| Dividend Yield | 1.87% | 2.54% | |
| Holdings | 55 | 3,921 | |
| YTD Return | -0.12% | +14.40% | |
| 1Y Return | -8.96% | +27.97% | |
| 3Y Return (annualized) | -3.11% | +19.79% | |
| 5Y Return (annualized) | -2.91% | +9.31% | |
| Volatility (annualized) | 16.1% | 17.7% | |
| Max Drawdown | -32.6% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Mar 2, 2007 |
VDIGX vs VEU Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.96% while VEU returned +27.97%. Year to date, VDIGX is down 0.12% versus a gain of 14.40% for VEU.
Over three years, VDIGX compounded at -3.11% per year against +19.79% for VEU; over five years the annualized figures are -2.91% and +9.31% respectively. Across the full 5-year window we track, VEU has the edge at +3.55% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -32.6% for VDIGX and -62.8% for VEU. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VEU charges 0.04%. On a $10,000 position that is $22 vs $4 annually, a gap of $18 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 2.54% for VEU.
Holdings Overlap
VDIGX and VEU share 3 holdings out of 2862 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VEU?
VDIGX has an expense ratio of 0.22% while VEU charges 0.04%. VEU is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, VDIGX or VEU?
Over the past year VDIGX returned -8.96% vs +27.97% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.91% vs +3.55% for VEU. Past performance does not guarantee future results.
Which is riskier, VDIGX or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VEU -62.8%.
Should I hold both VDIGX and VEU?
VDIGX and VEU have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VEU?
VDIGX and VEU share 3 common holdings with a 0.3% weight overlap. Combined, they hold 2862 unique securities.
Which pays a higher dividend, VDIGX or VEU?
VDIGX yields 1.87% while VEU yields 2.54%, so VEU currently pays the higher dividend yield.
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