VDIGX vs VGK
Vanguard Dividend Growth Fund Investor Class vs Vanguard FTSE Europe ETF
Quick Verdict
VGK has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.06% | |
| AUM | $36.4B | $30.0B | |
| Dividend Yield | 1.87% | 2.94% | |
| Holdings | 55 | 1,251 | |
| YTD Return | -0.12% | +11.16% | |
| 1Y Return | -8.96% | +23.18% | |
| 3Y Return (annualized) | -3.11% | +18.17% | |
| 5Y Return (annualized) | -2.91% | +9.29% | |
| Volatility (annualized) | 16.1% | 18.5% | |
| Max Drawdown | -32.6% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Mar 4, 2005 |
VDIGX vs VGK Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.96% while VGK returned +23.18%. Year to date, VDIGX is down 0.12% versus a gain of 11.16% for VGK.
Over three years, VDIGX compounded at -3.11% per year against +18.17% for VGK; over five years the annualized figures are -2.91% and +9.29% respectively. Across the full 5-year window we track, VGK has the edge at +3.69% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VGK charges 0.06%. On a $10,000 position that is $22 vs $6 annually, a gap of $16 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 2.94% for VGK.
Holdings Overlap
VDIGX and VGK share 1 holdings out of 1004 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VDIGX | Weight in VGK | Difference |
|---|---|---|---|
| DGE:LN | 0.46% | 0.31% | 0.15% |
Frequently Asked Questions
Which is cheaper, VDIGX or VGK?
VDIGX has an expense ratio of 0.22% while VGK charges 0.06%. VGK is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, VDIGX or VGK?
Over the past year VDIGX returned -8.96% vs +23.18% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.91% vs +3.69% for VGK. Past performance does not guarantee future results.
Which is riskier, VDIGX or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VGK -67.3%.
Should I hold both VDIGX and VGK?
VDIGX and VGK have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VGK?
VDIGX and VGK share 1 common holdings with a 0.3% weight overlap. Combined, they hold 1004 unique securities.
Which pays a higher dividend, VDIGX or VGK?
VDIGX yields 1.87% while VGK yields 2.94%, so VGK currently pays the higher dividend yield.
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