VDIGX vs VV
Vanguard Dividend Growth Fund Investor Class vs Vanguard Morningstar Large-Cap ETF
Which is better, VDIGX or VV?
VV has been ahead.
VV has a lower expense ratio. VV led over 1Y, 3Y, 5Y and the full window. VV is less concentrated, with 38.0% 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 | VV |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $35.5B | $52.6B |
| Dividend Yield | 23.10% | 0.99% |
| Holdings | 62 | 437 |
| YTD Price Return | -3.99% | +11.73%Best |
| 1Y Price Return | -14.10% | +15.04%Best |
| 3Y Price Return (annualized) | -3.79% | +20.06%Best |
| 5Y Price Return (annualized) | -3.26% | +11.56%Best |
| Volatility (annualized) | 16.0%Tie | 16.0%Tie |
| Max Drawdown | -32.6% | -26.5%Best |
| $10,000 over 5 years | $8,473 | $17,280Best |
| Top 10 Weight | 38.2% | 38.0%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Jan 27, 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 VV 0.99% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VDIGX vs VV 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 VV Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Large-Cap ETF (VV) is an ETF from Vanguard (US). Over the past year VDIGX returned -14.10% while VV returned +15.04%. Year to date, VDIGX is down 3.99% versus a gain of 11.73% for VV.
Over three years, VDIGX compounded at -3.79% per year against +20.06% for VV; over five years the annualized figures are -3.26% and +11.56% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX and VV have been equally volatile, both at 16.0% annualized.
The deepest peak-to-trough decline in our data was -32.6% for VDIGX and -26.5% for VV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.20% per year while VV 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 0.99% for VV.
Structure and taxes
VDIGX is a mutual fund and VV 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
97.1% of VDIGX's money is in holdings VV also owns. 36.1% of VV's money is in holdings VDIGX also owns.
Most of VDIGX is already inside VV. Owning both mostly buys the same companies twice.
49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 431 in VV, against full books of 62 and 437.
What only one of them owns
Our book lists 371 positions for VV that do not appear in our book for VDIGX (63.1% of the fund), and 0 for VDIGX that do not appear in VV (0.0%).
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 VV | Difference |
|---|---|---|---|
| AAPLApple, Inc | 3.43% | 7.18% | 3.75% |
| MSFTMicrosoft Corp | 4.62% | 5.47% | 0.85% |
| AVGOBroadcom Inc | 5.73% | 2.92% | 2.81% |
| LLYEli Lilly & Co. | 5.10% | 1.54% | 3.56% |
| GOOGLAlphabet Inc,class A | 1.49% | 3.31% | 1.82% |
| MAMastercard Inc | 3.56% | 0.72% | 2.84% |
| VVisa Inc Class A | 3.23% | 0.89% | 2.34% |
| KLACKla Corp | 3.71% | 0.38% | 3.33% |
| TXNTexas Instrument Inc | 3.54% | 0.40% | 3.14% |
| MRKMerck & Company Inc | 2.64% | 0.51% | 2.13% |
97.1% of VDIGX is already inside VV.
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 VV?
VDIGX has an expense ratio of 0.20% while VV charges 0.03%. VV is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, VDIGX or VV?
Over the past year VDIGX returned -14.10% vs +15.04% for VV, so VV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDIGX or VV?
VDIGX and VV have been equally volatile, both at 16.0% annualized. Worst drawdown: VDIGX -32.6% vs VV -26.5%.
Should I hold both VDIGX and VV?
VDIGX and VV have a monthly-return correlation of 0.76, 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 VV?
97.1% of VDIGX's money is in holdings VV also owns. 36.1% of VV's is in holdings VDIGX also owns. They hold 49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 431 in VV.
Which pays a higher dividend, VDIGX or VV?
VDIGX yields 23.10% while VV yields 0.99%, so VDIGX currently pays the higher dividend yield.
Is it better to hold VDIGX or VV in a taxable account?
VV 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 VV better than VDIGX?
VV has a lower expense ratio. VV led over 1Y, 3Y, 5Y and the full window. VV is less concentrated, with 38.0% 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.