VDIGX vs VONG
Vanguard Dividend Growth Fund Investor Class vs Vanguard Russell 1000 Growth ETF
Quick Verdict
VONG has a lower expense ratio. VONG delivered stronger 1-year returns. VONG offers more diversification with 386 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VONG | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.06% | |
| AUM | $36.4B | $44.9B | |
| Dividend Yield | 1.87% | 0.54% | |
| Holdings | 55 | 390 | |
| YTD Return | -0.12% | +5.03% | |
| 1Y Return | -8.96% | +11.57% | |
| 3Y Return (annualized) | -3.11% | +22.20% | |
| 5Y Return (annualized) | -2.91% | +12.72% | |
| Volatility (annualized) | 16.1% | 15.9% | |
| Max Drawdown | -32.6% | -32.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Sep 20, 2010 |
VDIGX vs VONG Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Russell 1000 Growth ETF (VONG) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.96% while VONG returned +11.57%. Year to date, VDIGX is down 0.12% versus a gain of 5.03% for VONG.
Over three years, VDIGX compounded at -3.11% per year against +22.20% for VONG; over five years the annualized figures are -2.91% and +12.72% respectively. Across the full 5-year window we track, VONG has the edge at +15.73% 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 15.9% for VONG. 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 -32.7% for VONG. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VONG charges 0.06%. On a $10,000 position that is $22 vs $6 annually, a gap of $16 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 0.54% for VONG.
Holdings Overlap
VDIGX and VONG share 26 holdings out of 407 unique holdings combined, representing a 24.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VONG?
VDIGX has an expense ratio of 0.22% while VONG charges 0.06%. VONG is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, VDIGX or VONG?
Over the past year VDIGX returned -8.96% vs +11.57% for VONG, so VONG leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.91% vs +15.73% for VONG. Past performance does not guarantee future results.
Which is riskier, VDIGX or VONG?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.9% for VONG. Worst drawdown: VDIGX -32.6% vs VONG -32.7%.
Should I hold both VDIGX and VONG?
VDIGX and VONG have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VONG?
VDIGX and VONG share 26 common holdings with a 24.3% weight overlap. Combined, they hold 407 unique securities.
Which pays a higher dividend, VDIGX or VONG?
VDIGX yields 1.87% while VONG yields 0.54%, so VDIGX currently pays the higher dividend yield.
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