VDIGX vs VUG
Vanguard Dividend Growth Fund Investor Class vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. VUG delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $223.2B | |
| Dividend Yield | 1.87% | 0.47% | |
| Holdings | 55 | 155 | |
| YTD Return | -0.21% | +10.57% | |
| 1Y Return | -8.99% | +18.21% | |
| 3Y Return (annualized) | -3.09% | +24.26% | |
| 5Y Return (annualized) | -2.76% | +13.05% | |
| Volatility (annualized) | 16.1% | 16.5% | |
| Max Drawdown | -32.6% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Jan 26, 2004 |
VDIGX vs VUG Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VUG returned +18.21%. Year to date, VDIGX is down 0.21% versus a gain of 10.57% for VUG.
Over three years, VDIGX compounded at -3.09% per year against +24.26% for VUG; over five years the annualized figures are -2.76% and +13.05% respectively. Across the full 5-year window we track, VUG has the edge at +11.30% annualized vs -2.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 16.1% for VDIGX. 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 -51.4% for VUG. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VUG 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 0.47% for VUG.
Holdings Overlap
VDIGX and VUG share 15 holdings out of 178 unique holdings combined, representing a 23.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VUG?
VDIGX has an expense ratio of 0.22% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VUG?
Over the past year VDIGX returned -8.99% vs +18.21% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +11.30% for VUG. Past performance does not guarantee future results.
Which is riskier, VDIGX or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VUG -51.4%.
Should I hold both VDIGX and VUG?
VDIGX and VUG have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VUG?
VDIGX and VUG share 15 common holdings with a 23.8% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, VDIGX or VUG?
VDIGX yields 1.87% while VUG yields 0.47%, so VDIGX currently pays the higher dividend yield.
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