VDIGX vs VV
Vanguard Dividend Growth Fund Investor Class vs Vanguard Large-Cap ETF
Quick Verdict
VV has a lower expense ratio. VV delivered stronger 1-year returns. VV offers more diversification with 431 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VV | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.03% | |
| AUM | $36.4B | $52.5B | |
| Dividend Yield | 1.87% | 1.25% | |
| Holdings | 55 | 446 | |
| YTD Return | -0.21% | +13.63% | |
| 1Y Return | -8.99% | +22.60% | |
| 3Y Return (annualized) | -3.09% | +22.03% | |
| 5Y Return (annualized) | -2.92% | +12.97% | |
| Volatility (annualized) | 16.1% | 14.8% | |
| Max Drawdown | -32.6% | -56.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Jan 27, 2004 |
VDIGX vs VV Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Large-Cap ETF (VV) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VV returned +22.60%. Year to date, VDIGX is down 0.21% versus a gain of 13.63% for VV.
Over three years, VDIGX compounded at -3.09% per year against +22.03% for VV; over five years the annualized figures are -2.92% and +12.97% respectively. Across the full 5-year window we track, VV has the edge at +9.52% annualized vs -2.92%. 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 14.8% for VV. 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 -56.0% for VV. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VV 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 1.25% for VV.
Holdings Overlap
VDIGX and VV share 43 holdings out of 435 unique holdings combined, representing a 27.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VV?
VDIGX has an expense ratio of 0.22% while VV charges 0.03%. VV is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VDIGX or VV?
Over the past year VDIGX returned -8.99% vs +22.60% for VV, so VV leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.92% vs +9.52% for VV. Past performance does not guarantee future results.
Which is riskier, VDIGX or VV?
VDIGX has been the more volatile fund at 16.1% annualized versus 14.8% for VV. Worst drawdown: VDIGX -32.6% vs VV -56.0%.
Should I hold both VDIGX and VV?
VDIGX and VV have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VV?
VDIGX and VV share 43 common holdings with a 27.1% weight overlap. Combined, they hold 435 unique securities.
Which pays a higher dividend, VDIGX or VV?
VDIGX yields 1.87% while VV yields 1.25%, so VDIGX currently pays the higher dividend yield.
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