VDIGX vs VMLUX
Vanguard Dividend Growth Fund Investor Class vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VMLUX has a lower expense ratio. VMLUX delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.09% | |
| AUM | $36.4B | $34.1B | |
| Dividend Yield | 1.87% | 2.89% | |
| Holdings | 55 | 7,110 | |
| YTD Return | -0.21% | -0.64% | |
| 1Y Return | -8.99% | -0.36% | |
| 3Y Return (annualized) | -3.09% | +0.81% | |
| 5Y Return (annualized) | -2.92% | -0.58% | |
| Volatility (annualized) | 16.1% | 2.8% | |
| Max Drawdown | -32.6% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 1992 | Feb 12, 2001 |
VDIGX vs VMLUX Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VDIGX returned -8.99% while VMLUX returned -0.36%. Year to date, VDIGX is down 0.21% versus a loss of 0.64% for VMLUX.
Over three years, VDIGX compounded at -3.09% per year against +0.81% for VMLUX; over five years the annualized figures are -2.92% and -0.58% respectively. Across the full 5-year window we track, VMLUX has the edge at -0.58% 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VMLUX charges 0.09%. On a $10,000 position that is $22 vs $9 annually, a gap of $13 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 2.89% for VMLUX.
Holdings Overlap
VDIGX and VMLUX share 0 holdings out of 962 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 VMLUX?
VDIGX has an expense ratio of 0.22% while VMLUX charges 0.09%. VMLUX is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, VDIGX or VMLUX?
Over the past year VDIGX returned -8.99% vs -0.36% for VMLUX, so VMLUX leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.92% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VDIGX or VMLUX?
VDIGX has been the more volatile fund at 16.1% annualized versus 2.8% for VMLUX. Worst drawdown: VDIGX -32.6% vs VMLUX -8.5%.
Should I hold both VDIGX and VMLUX?
VDIGX and VMLUX have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VMLUX?
VDIGX and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 962 unique securities.
Which pays a higher dividend, VDIGX or VMLUX?
VDIGX yields 1.87% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.