VDIGX vs VGSH
Vanguard Dividend Growth Fund Investor Class vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VGSH delivered stronger 1-year returns. VGSH offers more diversification with 76 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $29.4B | |
| Dividend Yield | 1.87% | 3.87% | |
| Holdings | 55 | 94 | |
| YTD Return | -0.12% | +0.65% | |
| 1Y Return | -8.96% | +2.56% | |
| 3Y Return (annualized) | -3.11% | +4.25% | |
| 5Y Return (annualized) | -2.91% | +1.87% | |
| Volatility (annualized) | 16.1% | 1.4% | |
| Max Drawdown | -32.6% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 1992 | Nov 19, 2009 |
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 a ETF from Vanguard (US). Over the past year VDIGX returned -8.96% while VGSH returned +2.56%. Year to date, VDIGX is down 0.12% versus a gain of 0.65% for VGSH.
Over three years, VDIGX compounded at -3.11% per year against +4.25% for VGSH; over five years the annualized figures are -2.91% and +1.87% respectively. Across the full 5-year window we track, VGSH has the edge at +0.71% annualized vs -2.91%. 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 1.4% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VGSH 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 3.87% for VGSH.
Holdings Overlap
VDIGX and VGSH share 0 holdings out of 123 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 VGSH?
VDIGX has an expense ratio of 0.22% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VGSH?
Over the past year VDIGX returned -8.96% vs +2.56% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.91% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, VDIGX or VGSH?
VDIGX has been the more volatile fund at 16.1% annualized versus 1.4% 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 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VGSH?
VDIGX and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, VDIGX or VGSH?
VDIGX yields 1.87% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.
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