VDIGX vs VWO
Vanguard Dividend Growth Fund Investor Class vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.06% | |
| AUM | $36.4B | $122.3B | |
| Dividend Yield | 1.87% | 2.37% | |
| Holdings | 55 | 6,334 | |
| YTD Return | -0.30% | +10.11% | |
| 1Y Return | -9.13% | +21.05% | |
| 3Y Return (annualized) | -3.20% | +17.66% | |
| 5Y Return (annualized) | -3.00% | +6.52% | |
| Volatility (annualized) | 16.1% | 20.1% | |
| Max Drawdown | -32.6% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Mar 4, 2005 |
VDIGX vs VWO Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VDIGX returned -9.13% while VWO returned +21.05%. Year to date, VDIGX is down 0.30% versus a gain of 10.11% for VWO.
Over three years, VDIGX compounded at -3.20% per year against +17.66% for VWO; over five years the annualized figures are -3.00% and +6.52% respectively. Across the full 5-year window we track, VWO has the edge at +4.98% annualized vs -3.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 VWO charges 0.06%. On a $10,000 position that is $22 vs $6 annually, a gap of $16 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 2.37% for VWO.
Holdings Overlap
VDIGX and VWO share 0 holdings out of 4029 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 VWO?
VDIGX has an expense ratio of 0.22% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, VDIGX or VWO?
Over the past year VDIGX returned -9.13% vs +21.05% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.00% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VDIGX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VWO -68.3%.
Should I hold both VDIGX and VWO?
VDIGX and VWO 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 VWO?
VDIGX and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4029 unique securities.
Which pays a higher dividend, VDIGX or VWO?
VDIGX yields 1.87% while VWO yields 2.37%, so VWO currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.