VDIGX vs VTBNX
Vanguard Dividend Growth Fund Investor Class vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VDIGX or VTBNX?
Large Cap Blend against Long Term High Quality.
VTBNX has a lower expense ratio.
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 | VTBNX |
|---|---|---|
| Expense Ratio | 0.20% | 0.02%Best |
| AUM | $35.5B | $207.3B |
| Dividend Yield | 23.10% | 3.80% |
| Holdings | 62 | 14,920 |
| YTD Price Return | -3.77% | -3.22% |
| 1Y Price Return | -14.05% | -3.62% |
| 3Y Price Return (annualized) | -3.80% | +0.29% |
| 5Y Price Return (annualized) | -3.58% | -3.71% |
| Volatility (annualized) | 16.0% | 6.3%Best |
| Max Drawdown | -32.6% | -21.5%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term High Quality |
| Inception | May 15, 1992 | Feb 17, 2009 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VDIGX currently yields 23.10% and VTBNX 3.80%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 9, 2026 (5 years).
VDIGX vs VTBNX Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VDIGX's price moved -14.05% and VTBNX's -3.62%, before the income each one paid out.
Over three years, VDIGX compounded at -3.80% per year against +0.29% for VTBNX; over five years the annualized figures are -3.58% and -3.71% 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 6.3% for VTBNX. 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 -21.5% for VTBNX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VTBNX charges 0.02%. On a $10,000 position that is $20 vs $2 annually, a gap of $18 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 3.80% for VTBNX.
Holdings Overlap
We hold position weights for 51 holdings in VDIGX and 12,623 in VTBNX, totalling 99.3% and 61.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 51 positions we hold weights for in VDIGX and 12,623 in VTBNX, against full books of 62 and 14,920.
You are not choosing between two funds in isolation.
Whichever of VDIGX and VTBNX 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 VTBNX?
VDIGX has an expense ratio of 0.20% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $18 a year on a $10,000 investment.
Which is riskier, VDIGX or VTBNX?
VDIGX has been the more volatile fund at 16.0% annualized versus 6.3% for VTBNX. Worst drawdown: VDIGX -32.6% vs VTBNX -21.5%.
Should I hold both VDIGX and VTBNX?
VDIGX and VTBNX have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VDIGX or VTBNX?
VDIGX yields 23.10% while VTBNX yields 3.80%, so VDIGX currently pays the higher dividend yield.
Is VTBNX better than VDIGX?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.