VDIGX vs VIITX

Quick Verdict

VIITX has a lower expense ratio. VIITX delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.

Lower Fees: VIITXHigher Returns: VIITXMore Diversified: VIITX

Side-by-Side Comparison

MetricVDIGXVIITXWinner
Expense Ratio0.22%0.02%
AUM$36.4B-
Dividend Yield1.87%4.56%
Holdings552,599
YTD Return-0.46%-1.94%
1Y Return-10.04%-1.39%
3Y Return (annualized)-3.25%+0.57%
5Y Return (annualized)-3.17%-2.33%
Volatility (annualized)16.1%4.2%
Max Drawdown-32.6%-15.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionMay 15, 1992Dec 1, 1997

VDIGX vs VIITX Performance

Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year VDIGX returned -10.04% while VIITX returned -1.39%. Year to date, VDIGX is down 0.46% versus a loss of 1.94% for VIITX.

Over three years, VDIGX compounded at -3.25% per year against +0.57% for VIITX; over five years the annualized figures are -3.17% and -2.33% respectively. Across the full 5-year window we track, VIITX has the edge at -2.33% annualized vs -3.17%. 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 4.2% for VIITX. 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 -15.0% for VIITX. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VDIGX charges 0.22% per year while VIITX charges 0.02%. On a $10,000 position that is $22 vs $2 annually, a gap of $20 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 4.56% for VIITX.

Holdings Overlap

0.0%overlap

VDIGX and VIITX share 1 holdings out of 1231 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VDIGXWeight in VIITXDifference
CURV0.00%0.15%0.15%

Frequently Asked Questions

Which is cheaper, VDIGX or VIITX?

VDIGX has an expense ratio of 0.22% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, VDIGX or VIITX?

Over the past year VDIGX returned -10.04% vs -1.39% for VIITX, so VIITX leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.17% vs -2.33% for VIITX. Past performance does not guarantee future results.

Which is riskier, VDIGX or VIITX?

VDIGX has been the more volatile fund at 16.1% annualized versus 4.2% for VIITX. Worst drawdown: VDIGX -32.6% vs VIITX -15.0%.

Should I hold both VDIGX and VIITX?

VDIGX and VIITX have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VDIGX and VIITX?

VDIGX and VIITX share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1231 unique securities.

Which pays a higher dividend, VDIGX or VIITX?

VDIGX yields 1.87% while VIITX yields 4.56%, so VIITX currently pays the higher dividend yield.

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