VDIGX vs VOO
Vanguard Dividend Growth Fund Investor Class vs Vanguard S&P 500 ETF
Which is better, VDIGX or VOO?
VOO has been ahead.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 38.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VDIGX | VOO |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $35.5B | $997.4B |
| Dividend Yield | 23.10% | 1.04% |
| Holdings | 62 | 509 |
| YTD Price Return | -3.99% | +11.70%Best |
| 1Y Price Return | -14.10% | +15.25%Best |
| 3Y Price Return (annualized) | -3.79% | +19.79%Best |
| 5Y Price Return (annualized) | -3.26% | +11.89%Best |
| Volatility (annualized) | 16.0% | 15.8%Best |
| Max Drawdown | -32.6% | -25.4%Best |
| $10,000 over 5 years | $8,473 | $17,537Best |
| Top 10 Weight | 38.2% | 37.6%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Sep 7, 2010 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VDIGX. Both funds are measured the same way, so the comparison holds. VDIGX yields 23.10% and VOO 1.04% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VDIGX vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VDIGX vs VOO Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VDIGX returned -14.10% while VOO returned +15.25%. Year to date, VDIGX is down 3.99% versus a gain of 11.70% for VOO.
Over three years, VDIGX compounded at -3.79% per year against +19.79% for VOO; over five years the annualized figures are -3.26% and +11.89% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.8% for VOO. 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 -25.4% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VOO 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 23.10% against 1.04% for VOO.
Structure and taxes
VDIGX is a mutual fund and VOO is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
97.1% of VDIGX's money is in holdings VOO also owns. 35.5% of VOO's money is in holdings VDIGX also owns.
Most of VDIGX is already inside VOO. Owning both mostly buys the same companies twice.
49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 494 in VOO, against full books of 62 and 509.
What only one of them owns
Our book lists 438 positions for VOO that do not appear in our book for VDIGX (63.7% of the fund), and 0 for VDIGX that do not appear in VOO (0.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VDIGX | Weight in VOO | Difference |
|---|---|---|---|
| AAPLApple, Inc | 3.43% | 7.05% | 3.62% |
| MSFTMicrosoft Corp | 4.62% | 5.36% | 0.74% |
| AVGOBroadcom Inc | 5.73% | 2.86% | 2.87% |
| LLYEli Lilly & Co. | 5.10% | 1.41% | 3.69% |
| GOOGLAlphabet Inc,class A | 1.49% | 3.24% | 1.75% |
| MAMastercard Inc | 3.56% | 0.72% | 2.84% |
| VVisa Inc Class A | 3.23% | 0.93% | 2.30% |
| KLACKla Corp | 3.71% | 0.37% | 3.34% |
| TXNTexas Instrument Inc | 3.54% | 0.39% | 3.15% |
| MRKMerck & Company Inc | 2.64% | 0.50% | 2.14% |
97.1% of VDIGX is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VDIGX or VOO?
VDIGX has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, VDIGX or VOO?
Over the past year VDIGX returned -14.10% vs +15.25% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VOO?
VDIGX has been the more volatile fund at 16.0% annualized versus 15.8% for VOO. Worst drawdown: VDIGX -32.6% vs VOO -25.4%.
Should I hold both VDIGX and VOO?
VDIGX and VOO have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VDIGX and VOO?
97.1% of VDIGX's money is in holdings VOO also owns. 35.5% of VOO's is in holdings VDIGX also owns. They hold 49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 494 in VOO.
Which pays a higher dividend, VDIGX or VOO?
VDIGX yields 23.10% while VOO yields 1.04%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VOO in a taxable account?
VOO is an ETF and VDIGX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VOO better than VDIGX?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.