VDIGX vs VT

Quick Verdict

VT has a lower expense ratio. VT delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.

Lower Fees: VTHigher Returns: VTMore Diversified: VT

Side-by-Side Comparison

MetricVDIGXVTWinner
Expense Ratio0.22%0.06%
AUM$36.4B$77.6B
Dividend Yield1.87%1.61%
Holdings5510,133
YTD Return-0.21%+14.19%
1Y Return-8.99%+25.25%
3Y Return (annualized)-3.09%+20.36%
5Y Return (annualized)-2.76%+11.17%
Volatility (annualized)16.1%16.6%
Max Drawdown-32.6%-50.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 15, 1992Jun 24, 2008

VDIGX vs VT Performance

Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VT returned +25.25%. Year to date, VDIGX is down 0.21% versus a gain of 14.19% for VT.

Over three years, VDIGX compounded at -3.09% per year against +20.36% for VT; over five years the annualized figures are -2.76% and +11.17% respectively. Across the full 5-year window we track, VT has the edge at +7.37% annualized vs -2.76%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VT has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -50.6% for VT. 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VDIGX charges 0.22% per year while VT 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 1.61% for VT.

Holdings Overlap

16.3%overlap

VDIGX and VT share 45 holdings out of 8929 unique holdings combined, representing a 16.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VDIGXWeight in VTDifference
MSFT4.71%2.68%2.03%
AAPL3.25%3.47%0.22%
AVGO4.97%1.71%3.26%
LLYProProPro
MAProProPro
TXNProProPro
VProProPro
NOCProProPro
HDProProPro
LIN:IEProProPro
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Frequently Asked Questions

Which is cheaper, VDIGX or VT?

VDIGX has an expense ratio of 0.22% while VT charges 0.06%. VT is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, VDIGX or VT?

Over the past year VDIGX returned -8.99% vs +25.25% for VT, so VT leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +7.37% for VT. Past performance does not guarantee future results.

Which is riskier, VDIGX or VT?

VT has been the more volatile fund at 16.6% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VT -50.6%.

Should I hold both VDIGX and VT?

VDIGX and VT have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VDIGX and VT?

VDIGX and VT share 45 common holdings with a 16.3% weight overlap. Combined, they hold 8929 unique securities.

Which pays a higher dividend, VDIGX or VT?

VDIGX yields 1.87% while VT yields 1.61%, so VDIGX currently pays the higher dividend yield.

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