VDIGX vs VGSH
Vanguard Dividend Growth Fund Investor Class vs Vanguard Short Term Treasury ETF
Which is better, VDIGX or VGSH?
Large Cap Blend against Short Term Government Bond.
VGSH has a lower expense ratio.
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 | VGSH |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $35.5B | $34.7B |
| Dividend Yield | 23.10% | 3.82% |
| Holdings | 62 | 94 |
| YTD Price Return | -3.99% | -1.91% |
| 1Y Price Return | -14.10% | -2.01% |
| 3Y Price Return (annualized) | -3.79% | +0.05% |
| 5Y Price Return (annualized) | -3.37% | -1.29% |
| Volatility (annualized) | 16.0% | 1.9%Best |
| Max Drawdown | -32.6% | -6.7%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Short Term Government Bond |
| Inception | May 15, 1992 | Nov 19, 2009 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VDIGX currently yields 23.10% and VGSH 3.82%.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
VDIGX vs VGSH Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year VDIGX's price moved -14.10% and VGSH's -2.01%, before the income each one paid out.
Over three years, VDIGX compounded at -3.79% per year against +0.05% for VGSH; over five years the annualized figures are -3.37% and -1.29% 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 1.9% for VGSH. 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 -6.7% for VGSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.43. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VGSH charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 3.82% for VGSH.
Structure and taxes
VDIGX is a mutual fund and VGSH 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 71 in VGSH, totalling 99.3% and 76.6% 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 71 in VGSH, against full books of 62 and 94.
You are not choosing between two funds in isolation.
Whichever of VDIGX and VGSH 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 VGSH?
VDIGX has an expense ratio of 0.20% while VGSH charges 0.03%. VGSH is the cheaper option, by $17 a year on a $10,000 investment.
Which is riskier, VDIGX or VGSH?
VDIGX has been the more volatile fund at 16.0% annualized versus 1.9% for VGSH. Worst drawdown: VDIGX -32.6% vs VGSH -6.7%.
Should I hold both VDIGX and VGSH?
VDIGX and VGSH have a monthly-return correlation of 0.43, 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 VGSH?
VDIGX yields 23.10% while VGSH yields 3.82%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VGSH in a taxable account?
VGSH 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 VGSH better than VDIGX?
VGSH has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.