VDIGX vs VEU
Vanguard Dividend Growth Fund Investor Class vs Vanguard FTSE All World Ex US ETF
Which is better, VDIGX or VEU?
VEU has been ahead.
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window.
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 | VDIGX | VEU |
|---|---|---|
| Expense Ratio | 0.20% | 0.04%Best |
| AUM | $35.5B | $68.4B |
| Dividend Yield | 23.10% | 2.48% |
| Holdings | 62 | 3,928 |
| YTD Price Return | -3.90% | +11.89%Best |
| 1Y Price Return | -13.86% | +17.90%Best |
| 3Y Price Return (annualized) | -3.11% | +16.83%Best |
| 5Y Price Return (annualized) | -3.45% | +6.04%Best |
| Volatility (annualized) | 16.0% | 15.2%Best |
| Max Drawdown | -32.6% | -30.8%Best |
| $10,000 over 5 years | $8,390 | $13,408Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Mar 2, 2007 |
Not shown on this pair: Top 10 Weight.
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. VDIGX yields 23.10% and VEU 2.48% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2021 to Sep 23, 2026 (5 years).
VDIGX vs VEU 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.
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 an ETF from Vanguard (US). Over the past year VDIGX returned -13.86% while VEU returned +17.90%. Year to date, VDIGX is down 3.90% versus a gain of 11.89% for VEU.
Over three years, VDIGX compounded at -3.11% per year against +16.83% for VEU; over five years the annualized figures are -3.45% and +6.04% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.2% for VEU. 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 -30.8% for VEU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VEU charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 2.48% for VEU.
Structure and taxes
VDIGX is a mutual fund and VEU 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
At least 2.2% of VDIGX's money is in holdings VEU also owns.
Stated as a floor: for VEU, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VDIGX and VEU share little of their money.
2 positions in common, counted across the 51 positions we hold weights for in VDIGX and 3,645 in VEU, against full books of 62 and 3,928.
You are not choosing between two funds in isolation.
Whichever of VDIGX and VEU 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, VDIGX or VEU?
VDIGX has an expense ratio of 0.20% while VEU charges 0.04%. VEU is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, VDIGX or VEU?
Over the past year VDIGX returned -13.86% vs +17.90% for VEU, so VEU leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VEU?
VDIGX has been the more volatile fund at 16.0% annualized versus 15.2% for VEU. Worst drawdown: VDIGX -32.6% vs VEU -30.8%.
Should I hold both VDIGX and VEU?
VDIGX and VEU have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VDIGX and VEU?
At least 2.2% of VDIGX's money is in holdings VEU also owns. Our book for VEU is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 51 positions we hold weights for in VDIGX and 3,645 in VEU.
Which pays a higher dividend, VDIGX or VEU?
VDIGX yields 23.10% while VEU yields 2.48%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VEU in a taxable account?
VEU 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 VEU better than VDIGX?
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.