VDIGX vs VIG
Vanguard Dividend Growth Fund Investor Class vs Vanguard Dividend Appreciation ETF
Quick Verdict
VIG has a lower expense ratio. VIG delivered stronger 1-year returns. VIG offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.04% | |
| AUM | $36.4B | $110.2B | |
| Dividend Yield | 1.87% | 1.79% | |
| Holdings | 55 | 335 | |
| YTD Return | -0.21% | +12.33% | |
| 1Y Return | -8.99% | +20.84% | |
| 3Y Return (annualized) | -3.09% | +16.69% | |
| 5Y Return (annualized) | -2.92% | +10.89% | |
| Volatility (annualized) | 16.1% | 13.3% | |
| Max Drawdown | -32.6% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Apr 21, 2006 |
VDIGX vs VIG Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VIG returned +20.84%. Year to date, VDIGX is down 0.21% versus a gain of 12.33% for VIG.
Over three years, VDIGX compounded at -3.09% per year against +16.69% for VIG; over five years the annualized figures are -2.92% and +10.89% respectively. Across the full 5-year window we track, VIG has the edge at +8.70% annualized vs -2.92%. 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 13.3% for VIG. 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 -48.2% for VIG. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VIG charges 0.04%. On a $10,000 position that is $22 vs $4 annually, a gap of $18 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 1.79% for VIG.
Holdings Overlap
VDIGX and VIG share 34 holdings out of 344 unique holdings combined, representing a 40.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VIG?
VDIGX has an expense ratio of 0.22% while VIG charges 0.04%. VIG is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, VDIGX or VIG?
Over the past year VDIGX returned -8.99% vs +20.84% for VIG, so VIG leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.92% vs +8.70% for VIG. Past performance does not guarantee future results.
Which is riskier, VDIGX or VIG?
VDIGX has been the more volatile fund at 16.1% annualized versus 13.3% for VIG. Worst drawdown: VDIGX -32.6% vs VIG -48.2%.
Should I hold both VDIGX and VIG?
VDIGX and VIG have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VIG?
VDIGX and VIG share 34 common holdings with a 40.7% weight overlap. Combined, they hold 344 unique securities.
Which pays a higher dividend, VDIGX or VIG?
VDIGX yields 1.87% while VIG yields 1.79%, so VDIGX currently pays the higher dividend yield.
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