VDIGX vs VGHAX
Vanguard Dividend Growth Fund Investor Class vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
VDIGX has a lower expense ratio. VGHAX delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.27% | |
| AUM | $35.5B | $32.8B | |
| Dividend Yield | 23.36% | 6.45% | |
| Holdings | 55 | 109 | |
| YTD Return | -0.21% | +2.11% | |
| 1Y Return | -10.48% | +21.47% | |
| 3Y Return (annualized) | -3.17% | -0.69% | |
| 5Y Return (annualized) | -3.12% | -2.76% | |
| Volatility (annualized) | 16.1% | 15.3% | |
| Max Drawdown | -32.6% | -33.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Nov 12, 2001 |
VDIGX vs VGHAX Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VDIGX returned -10.48% while VGHAX returned +21.47%. Year to date, VDIGX is down 0.21% versus a gain of 2.11% for VGHAX.
Over three years, VDIGX compounded at -3.17% per year against -0.69% for VGHAX; over five years the annualized figures are -3.12% and -2.76% respectively. Across the full 5-year window we track, VGHAX has the edge at -2.76% annualized vs -3.12%. 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 15.3% for VGHAX. 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 -33.6% for VGHAX. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VGHAX charges 0.27%. On a $10,000 position that is $20 vs $27 annually, a gap of $7 per year that compounds over a long holding period. On income, VDIGX currently yields 23.36% against 6.45% for VGHAX.
Holdings Overlap
VDIGX and VGHAX share 7 holdings out of 126 unique holdings combined, representing a 14.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VGHAX?
VDIGX has an expense ratio of 0.20% while VGHAX charges 0.27%. VDIGX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, VDIGX or VGHAX?
Over the past year VDIGX returned -10.48% vs +21.47% for VGHAX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.12% vs -2.76% for VGHAX. Past performance does not guarantee future results.
Which is riskier, VDIGX or VGHAX?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.3% for VGHAX. Worst drawdown: VDIGX -32.6% vs VGHAX -33.6%.
Should I hold both VDIGX and VGHAX?
VDIGX and VGHAX have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VGHAX?
VDIGX and VGHAX share 7 common holdings with a 14.0% weight overlap. Combined, they hold 126 unique securities.
Which pays a higher dividend, VDIGX or VGHAX?
VDIGX yields 23.36% while VGHAX yields 6.45%, so VDIGX currently pays the higher dividend yield.
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