VDIGX vs VTI
Vanguard Dividend Growth Fund Investor Class vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $663.5B | |
| Dividend Yield | 1.87% | 1.07% | |
| Holdings | 55 | 3,543 | |
| YTD Return | -0.46% | +14.96% | |
| 1Y Return | -10.04% | +22.39% | |
| 3Y Return (annualized) | -3.25% | +21.51% | |
| 5Y Return (annualized) | -3.17% | +12.36% | |
| Volatility (annualized) | 16.1% | 15.4% | |
| Max Drawdown | -32.6% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | May 24, 2001 |
VDIGX vs VTI Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VDIGX returned -10.04% while VTI returned +22.39%. Year to date, VDIGX is down 0.46% versus a gain of 14.96% for VTI.
Over three years, VDIGX compounded at -3.25% per year against +21.51% for VTI; over five years the annualized figures are -3.17% and +12.36% respectively. Across the full 5-year window we track, VTI has the edge at +8.16% annualized vs -3.17%. 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 15.4% for VTI. 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
VDIGX and VTI share 45 holdings out of 2785 unique holdings combined, representing a 24.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VTI?
VDIGX has an expense ratio of 0.22% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VTI?
Over the past year VDIGX returned -10.04% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.17% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, VDIGX or VTI?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.4% for VTI. Worst drawdown: VDIGX -32.6% vs VTI -56.6%.
Should I hold both VDIGX and VTI?
VDIGX and VTI 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 VTI?
VDIGX and VTI share 45 common holdings with a 24.7% weight overlap. Combined, they hold 2785 unique securities.
Which pays a higher dividend, VDIGX or VTI?
VDIGX yields 1.87% while VTI yields 1.07%, so VDIGX currently pays the higher dividend yield.
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