VDIGX vs VTIP
VDIGX vs VTIP
Vanguard Dividend Growth Fund Investor Class vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VTIP delivered stronger 1-year returns. VDIGX offers more diversification with 47 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $19.3B | |
| Dividend Yield | 1.87% | 3.60% | |
| Holdings | 55 | 27 | |
| YTD Return | -0.21% | +1.87% | |
| 1Y Return | -8.99% | +3.01% | |
| 3Y Return (annualized) | -3.09% | +5.37% | |
| 5Y Return (annualized) | -2.76% | +3.39% | |
| Volatility (annualized) | 16.1% | 2.4% | |
| Max Drawdown | -32.6% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 1992 | Oct 12, 2012 |
VDIGX vs VTIP Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VTIP returned +3.01%. Year to date, VDIGX is down 0.21% versus a gain of 1.87% for VTIP.
Over three years, VDIGX compounded at -3.09% per year against +5.37% for VTIP; over five years the annualized figures are -2.76% and +3.39% respectively. Across the full 5-year window we track, VTIP has the edge at +1.58% annualized vs -2.76%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
VDIGX and VTIP share 0 holdings out of 70 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VTIP?
VDIGX has an expense ratio of 0.22% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VTIP?
Over the past year VDIGX returned -8.99% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VDIGX or VTIP?
VDIGX has been the more volatile fund at 16.1% annualized versus 2.4% for VTIP. Worst drawdown: VDIGX -32.6% vs VTIP -7.1%.
Should I hold both VDIGX and VTIP?
VDIGX and VTIP have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VTIP?
VDIGX and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 70 unique securities.
Which pays a higher dividend, VDIGX or VTIP?
VDIGX yields 1.87% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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