VDIGX vs VOT
Vanguard Dividend Growth Fund Investor Class vs Vanguard Morningstar Mid-Cap Growth ETF
Which is better, VDIGX or VOT?
Large Cap Blend against Mid Cap Growth.
VOT has a lower expense ratio. VOT led over 1Y, 3Y, 5Y and the full window. VOT is less concentrated, with 20.9% 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 | VOT |
|---|---|---|
| Expense Ratio | 0.20% | 0.05%Best |
| AUM | $35.5B | $19.1B |
| Dividend Yield | 23.10% | 0.60% |
| Holdings | 62 | 129 |
| YTD Price Return | -3.99% | +5.81%Best |
| 1Y Price Return | -14.10% | +1.16%Best |
| 3Y Price Return (annualized) | -3.79% | +15.43%Best |
| 5Y Price Return (annualized) | -3.37% | +4.15%Best |
| Volatility (annualized) | 16.0%Best | 19.9% |
| Max Drawdown | -32.6%Best | -37.6% |
| $10,000 over 5 years | $8,425 | $12,255Best |
| Top 10 Weight | 38.2% | 20.9%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | May 15, 1992 | Aug 17, 2006 |
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 VOT 0.60% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
VDIGX vs VOT 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 VOT Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Mid-Cap Growth ETF (VOT) is an ETF from Vanguard (US). Over the past year VDIGX returned -14.10% while VOT returned +1.16%. Year to date, VDIGX is down 3.99% versus a gain of 5.81% for VOT.
Over three years, VDIGX compounded at -3.79% per year against +15.43% for VOT; over five years the annualized figures are -3.37% and +4.15% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOT has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 16.0% 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 -37.6% for VOT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VOT charges 0.05%. On a $10,000 position that is $20 vs $5 annually, a gap of $15 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 0.60% for VOT.
Structure and taxes
VDIGX is a mutual fund and VOT 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
1.6% of VDIGX's money is in holdings VOT also owns. 1.9% of VOT's money is in holdings VDIGX also owns.
VOT and VDIGX share little of their money.
2 positions in common, counted across the 51 positions we hold weights for in VDIGX and 123 in VOT, against full books of 62 and 129.
What only one of them owns
Our book lists 117 positions for VOT that do not appear in our book for VDIGX (96.1% of the fund), and 47 for VDIGX that do not appear in VOT (95.5%).
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.
You are not choosing between two funds in isolation.
Whichever of VDIGX and VOT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VDIGX or VOT?
VDIGX has an expense ratio of 0.20% while VOT charges 0.05%. VOT is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, VDIGX or VOT?
Over the past year VDIGX returned -14.10% vs +1.16% for VOT, so VOT leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VOT?
VOT has been the more volatile fund at 19.9% annualized versus 16.0% for VDIGX. Worst drawdown: VDIGX -32.6% vs VOT -37.6%.
Should I hold both VDIGX and VOT?
VDIGX and VOT have a monthly-return correlation of 0.71, 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 VOT?
1.9% of VOT's money is in holdings VDIGX also owns. 1.9% of VOT's is in holdings VDIGX also owns. They hold 2 positions in common, counted across the 51 positions we hold weights for in VDIGX and 123 in VOT.
Which pays a higher dividend, VDIGX or VOT?
VDIGX yields 23.10% while VOT yields 0.60%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VOT in a taxable account?
VOT 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 VOT better than VDIGX?
VOT has a lower expense ratio. VOT led over 1Y, 3Y, 5Y and the full window. VOT is less concentrated, with 20.9% 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.