VDIGX vs VGIT
VDIGX vs VGIT
Vanguard Dividend Growth Fund Investor Class vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. VGIT delivered stronger 1-year returns. VGIT offers more diversification with 84 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $42.1B | |
| Dividend Yield | 1.87% | 3.84% | |
| Holdings | 55 | 106 | |
| YTD Return | -0.21% | -0.62% | |
| 1Y Return | -8.99% | +1.32% | |
| 3Y Return (annualized) | -3.09% | +3.60% | |
| 5Y Return (annualized) | -2.76% | -0.12% | |
| Volatility (annualized) | 16.1% | 4.3% | |
| Max Drawdown | -32.6% | -17.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 1992 | Nov 19, 2009 |
VDIGX vs VGIT Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VGIT returned +1.32%. Year to date, VDIGX is down 0.21% versus a loss of 0.62% for VGIT.
Over three years, VDIGX compounded at -3.09% per year against +3.60% for VGIT; over five years the annualized figures are -2.76% and -0.12% respectively. Across the full 5-year window we track, VGIT has the edge at +0.75% annualized vs -2.76%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VGIT charges 0.03%. On a $10,000 position that is $22 vs $3 annually, a gap of $19 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 3.84% for VGIT.
Holdings Overlap
VDIGX and VGIT share 0 holdings out of 131 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, VDIGX or VGIT?
VDIGX has an expense ratio of 0.22% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VGIT?
Over the past year VDIGX returned -8.99% vs +1.32% for VGIT, so VGIT leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +0.75% for VGIT. Past performance does not guarantee future results.
Which is riskier, VDIGX or VGIT?
VDIGX has been the more volatile fund at 16.1% annualized versus 4.3% for VGIT. Worst drawdown: VDIGX -32.6% vs VGIT -17.2%.
Should I hold both VDIGX and VGIT?
VDIGX and VGIT have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VGIT?
VDIGX and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, VDIGX or VGIT?
VDIGX yields 1.87% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.
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