VDIGX vs VGK
Vanguard Dividend Growth Fund Investor Class vs Vanguard FTSE Europe ETF
Which is better, VDIGX or VGK?
VGK has been ahead.
VGK has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 38.2%.
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 | VGK |
|---|---|---|
| Expense Ratio | 0.20% | 0.06%Best |
| AUM | $35.5B | $38.5B |
| Dividend Yield | 23.10% | 2.81% |
| Holdings | 62 | 1,240 |
| YTD Price Return | -3.99% | +4.32%Best |
| 1Y Price Return | -14.10% | +10.66%Best |
| 3Y Price Return (annualized) | -3.79% | +14.00%Best |
| 5Y Price Return (annualized) | -3.26% | +5.87%Best |
| Volatility (annualized) | 16.0%Best | 17.3% |
| Max Drawdown | -32.6%Best | -35.0% |
| $10,000 over 5 years | $8,473 | $13,300Best |
| Top 10 Weight | 38.2% | 18.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Mar 4, 2005 |
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 VGK 2.81% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VDIGX vs VGK 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 VGK Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US). Over the past year VDIGX returned -14.10% while VGK returned +10.66%. Year to date, VDIGX is down 3.99% versus a gain of 4.32% for VGK.
Over three years, VDIGX compounded at -3.79% per year against +14.00% for VGK; over five years the annualized figures are -3.26% and +5.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 16.0% 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 -35.0% for VGK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VGK charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 2.81% for VGK.
Structure and taxes
VDIGX is a mutual fund and VGK 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
We hold position weights for 51 holdings in VDIGX and 1,101 in VGK, totalling 99.3% and 95.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 51 positions we hold weights for in VDIGX and 1,101 in VGK, against full books of 62 and 1,240.
What only one of them owns
Our book lists 13 positions for VGK that do not appear in our book for VDIGX (3.3% of the fund), and 49 for VDIGX that do not appear in VGK (97.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VDIGX and VGK 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 VGK?
VDIGX has an expense ratio of 0.20% while VGK charges 0.06%. VGK is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, VDIGX or VGK?
Over the past year VDIGX returned -14.10% vs +10.66% for VGK, so VGK leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VGK?
VGK has been the more volatile fund at 17.3% annualized versus 16.0% for VDIGX. Worst drawdown: VDIGX -32.6% vs VGK -35.0%.
Should I hold both VDIGX and VGK?
VDIGX and VGK have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VDIGX or VGK?
VDIGX yields 23.10% while VGK yields 2.81%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VGK in a taxable account?
VGK 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 VGK better than VDIGX?
VGK has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.