VDIGX vs VTV
Vanguard Dividend Growth Fund Investor Class vs Vanguard Morningstar Value ETF
Which is better, VDIGX or VTV?
Large Cap Blend against Large Cap Value.
VTV has a lower expense ratio. VTV led over 1Y, 3Y, 5Y and the full window. VTV is less concentrated, with 22.5% of the fund in its ten largest positions against 38.2%.
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 | VTV |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $35.5B | $187.8B |
| Dividend Yield | 23.10% | 1.82% |
| Holdings | 62 | 311 |
| YTD Price Return | -3.90% | +14.04%Best |
| 1Y Price Return | -13.86% | +18.28%Best |
| 3Y Price Return (annualized) | -3.11% | +16.22%Best |
| 5Y Price Return (annualized) | -3.45% | +9.77%Best |
| Volatility (annualized) | 16.0% | 14.1%Best |
| Max Drawdown | -32.6% | -18.1%Best |
| $10,000 over 5 years | $8,390 | $15,937Best |
| Top 10 Weight | 38.2% | 22.5%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 15, 1992 | Jan 26, 2004 |
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 VTV 1.82% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2021 to Sep 23, 2026 (5 years).
VDIGX vs VTV 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 VTV Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Value ETF (VTV) is an ETF from Vanguard (US). Over the past year VDIGX returned -13.86% while VTV returned +18.28%. Year to date, VDIGX is down 3.90% versus a gain of 14.04% for VTV.
Over three years, VDIGX compounded at -3.11% per year against +16.22% for VTV; over five years the annualized figures are -3.45% and +9.77% 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 14.1% for VTV. 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 -18.1% for VTV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VTV charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 1.82% for VTV.
Structure and taxes
VDIGX is a mutual fund and VTV 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
56.5% of VDIGX's money is in holdings VTV also owns. 23.7% of VTV's money is in holdings VDIGX also owns.
The two portfolios partly overlap.
35 positions in common, counted across the 51 positions we hold weights for in VDIGX and 299 in VTV, against full books of 62 and 311.
What only one of them owns
Our book lists 256 positions for VTV that do not appear in our book for VDIGX (73.3% of the fund), and 14 for VDIGX that do not appear in VTV (40.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VDIGX | Weight in VTV | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 1.84% | 2.29% | 0.45% |
| XOMExxon Mobil Corp. | 1.64% | 2.39% | 0.75% |
| TXNTexas Instrument Inc | 3.54% | 0.47% | 3.07% |
| HDHome Depot Inc/The | 2.61% | 1.23% | 1.38% |
| MRKMerck & Company Inc | 2.64% | 1.19% | 1.45% |
| WFCWells Fargo & Co. | 2.68% | 0.98% | 1.70% |
| CATCaterpillar, Inc. | 1.82% | 1.39% | 0.43% |
| BLKBlackrock Funding Inc/De | 2.62% | 0.57% | 2.05% |
| KOCoca Cola Co. | 1.67% | 1.12% | 0.55% |
| MMCMarsh & Mclennan Cos Inc Common Stock Usd 1 | 2.25% | 0.34% | 1.91% |
56.5% of VDIGX is already inside VTV.
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 VTV?
VDIGX has an expense ratio of 0.20% while VTV charges 0.03%. VTV is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, VDIGX or VTV?
Over the past year VDIGX returned -13.86% vs +18.28% for VTV, so VTV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VTV?
VDIGX has been the more volatile fund at 16.0% annualized versus 14.1% for VTV. Worst drawdown: VDIGX -32.6% vs VTV -18.1%.
Should I hold both VDIGX and VTV?
VDIGX and VTV have a monthly-return correlation of 0.81, 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 VTV?
56.5% of VDIGX's money is in holdings VTV also owns. 23.7% of VTV's is in holdings VDIGX also owns. They hold 35 positions in common, counted across the 51 positions we hold weights for in VDIGX and 299 in VTV.
Which pays a higher dividend, VDIGX or VTV?
VDIGX yields 23.10% while VTV yields 1.82%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VTV in a taxable account?
VTV 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 VTV better than VDIGX?
VTV has a lower expense ratio. VTV led over 1Y, 3Y, 5Y and the full window. VTV is less concentrated, with 22.5% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.