VDIGX vs VT
Vanguard Dividend Growth Fund Investor Class vs Vanguard Total World Stock ETF
Which is better, VDIGX or VT?
VT has been ahead.
VT has a lower expense ratio. VT led over 1Y, 3Y, 5Y and the full window.
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 | VT |
|---|---|---|
| Expense Ratio | 0.20% | 0.06%Best |
| AUM | $35.5B | $97.9B |
| Dividend Yield | 23.10% | 1.55% |
| Holdings | 62 | 10,133 |
| YTD Price Return | -4.02% | +11.58%Best |
| 1Y Price Return | -14.34% | +15.09%Best |
| 3Y Price Return (annualized) | -3.90% | +18.11%Best |
| 5Y Price Return (annualized) | -3.26% | +9.06%Best |
| Volatility (annualized) | 16.0% | 15.0%Best |
| Max Drawdown | -32.6% | -28.0%Best |
| $10,000 over 5 years | $8,473 | $15,429Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Jun 24, 2008 |
Not shown on this pair: Top 10 Weight.
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 VT 1.55% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 17, 2026 (5 years).
VDIGX vs VT 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 VT Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Total World Stock ETF (VT) is an ETF from Vanguard (US). Over the past year VDIGX returned -14.34% while VT returned +15.09%. Year to date, VDIGX is down 4.02% versus a gain of 11.58% for VT.
Over three years, VDIGX compounded at -3.90% per year against +18.11% for VT; over five years the annualized figures are -3.26% and +9.06% 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 15.0% for VT. 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 -28.0% for VT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VT charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 1.55% for VT.
Structure and taxes
VDIGX is a mutual fund and VT 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
At least 95.4% of VDIGX's money is in holdings VT also owns.
Stated as a floor: for VT, our book for it covers 90.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of VDIGX is already inside VT. Owning both mostly buys the same companies twice.
48 positions in common, counted across the 51 positions we hold weights for in VDIGX and 9,272 in VT, against full books of 62 and 10,133.
Top Shared Holdings
| Stock | Weight in VDIGX | Weight in VT | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 4.62% | 2.97% | 1.65% |
| AVGOBroadcom Inc | 5.73% | 1.56% | 4.17% |
| AAPLApple, Inc | 3.43% | 3.84% | 0.41% |
| LLYEli Lilly & Co. | 5.10% | 0.79% | 4.31% |
| MAMastercard Inc | 3.56% | 0.40% | 3.16% |
| KLACKla Corp | 3.71% | 0.21% | 3.50% |
| TXNTexas Instrument Inc | 3.54% | 0.22% | 3.32% |
| VVisa Inc Class A | 3.23% | 0.52% | 2.71% |
| MRKMerck & Company Inc | 2.64% | 0.28% | 2.36% |
| WFCWells Fargo & Co. | 2.68% | 0.23% | 2.45% |
95.4% of VDIGX is already inside VT.
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 VT?
VDIGX has an expense ratio of 0.20% while VT charges 0.06%. VT is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, VDIGX or VT?
Over the past year VDIGX returned -14.34% vs +15.09% for VT, so VT leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VT?
VDIGX has been the more volatile fund at 16.0% annualized versus 15.0% for VT. Worst drawdown: VDIGX -32.6% vs VT -28.0%.
Should I hold both VDIGX and VT?
VDIGX and VT have a monthly-return correlation of 0.78, 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 VT?
At least 95.4% of VDIGX's money is in holdings VT also owns. Our book for VT is partial, so the real figure is this or higher. They hold 48 positions in common, counted across the 51 positions we hold weights for in VDIGX and 9,272 in VT.
Which pays a higher dividend, VDIGX or VT?
VDIGX yields 23.10% while VT yields 1.55%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VT in a taxable account?
VT 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 VT better than VDIGX?
VT has a lower expense ratio. VT led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.