VDIGX vs VO
Vanguard Dividend Growth Fund Investor Class vs Vanguard Morningstar Mid-Cap ETF
Quick Verdict
VO has a lower expense ratio. VO delivered stronger 1-year returns. VO offers more diversification with 289 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $35.5B | $106.6B | |
| Dividend Yield | 23.36% | 1.32% | |
| Holdings | 62 | 289 | |
| YTD Return | -1.31% | +12.95% | |
| 1Y Return | -12.26% | +15.56% | |
| 3Y Return (annualized) | -3.33% | +15.95% | |
| 5Y Return (annualized) | -3.31% | +7.42% | |
| Volatility (annualized) | 16.1% | 16.9% | |
| Max Drawdown | -32.6% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Jan 26, 2004 |
VDIGX vs VO Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VDIGX returned -12.26% while VO returned +15.56%. Year to date, VDIGX is down 1.31% versus a gain of 12.95% for VO.
Over three years, VDIGX compounded at -3.33% per year against +15.95% for VO; over five years the annualized figures are -3.31% and +7.42% respectively. Across the full 5-year window we track, VO has the edge at +9.15% annualized vs -3.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 16.1% for VDIGX. 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 -60.3% for VO. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VO 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 23.36% against 1.32% for VO.
Holdings Overlap
VDIGX and VO share 6 holdings out of 324 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VO?
VDIGX has an expense ratio of 0.20% while VO charges 0.03%. VO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VDIGX or VO?
Over the past year VDIGX returned -12.26% vs +15.56% for VO, so VO leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.31% vs +9.15% for VO. Past performance does not guarantee future results.
Which is riskier, VDIGX or VO?
VO has been the more volatile fund at 16.9% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VO -60.3%.
Should I hold both VDIGX and VO?
VDIGX and VO have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VO?
VDIGX and VO share 6 common holdings with a 2.1% weight overlap. Combined, they hold 324 unique securities.
Which pays a higher dividend, VDIGX or VO?
VDIGX yields 23.36% while VO yields 1.32%, so VDIGX currently pays the higher dividend yield.
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