VDIGX vs VOO
Vanguard Dividend Growth Fund Investor Class vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $979.0B | |
| Dividend Yield | 1.87% | 1.09% | |
| Holdings | 55 | 509 | |
| YTD Return | -0.21% | +13.79% | |
| 1Y Return | -8.99% | +23.01% | |
| 3Y Return (annualized) | -3.09% | +21.78% | |
| 5Y Return (annualized) | -2.92% | +13.39% | |
| Volatility (annualized) | 16.1% | 14.1% | |
| Max Drawdown | -32.6% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Sep 7, 2010 |
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 a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VOO returned +23.01%. Year to date, VDIGX is down 0.21% versus a gain of 13.79% for VOO.
Over three years, VDIGX compounded at -3.09% per year against +21.78% for VOO; over five years the annualized figures are -2.92% and +13.39% respectively. Across the full 5-year window we track, VOO has the edge at +13.57% 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 14.1% 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 -34.3% for VOO. 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 0.22% per year while VOO charges 0.03%. On a $10,000 position that is $22 vs $3 annually, a gap of $19 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 1.09% for VOO.
Holdings Overlap
VDIGX and VOO share 43 holdings out of 509 unique holdings combined, representing a 26.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VOO?
VDIGX has an expense ratio of 0.22% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VOO?
Over the past year VDIGX returned -8.99% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.92% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VDIGX or VOO?
VDIGX has been the more volatile fund at 16.1% annualized versus 14.1% for VOO. Worst drawdown: VDIGX -32.6% vs VOO -34.3%.
Should I hold both VDIGX and VOO?
VDIGX and VOO 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 VOO?
VDIGX and VOO share 43 common holdings with a 26.8% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, VDIGX or VOO?
VDIGX yields 1.87% while VOO yields 1.09%, so VDIGX currently pays the higher dividend yield.
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