VDIGX vs VXF
Vanguard Dividend Growth Fund Investor Class vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 2462 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.05% | |
| AUM | $36.4B | $31.6B | |
| Dividend Yield | 1.87% | 1.21% | |
| Holdings | 55 | 3,376 | |
| YTD Return | -0.12% | +17.47% | |
| 1Y Return | -8.96% | +27.53% | |
| 3Y Return (annualized) | -3.11% | +19.37% | |
| 5Y Return (annualized) | -2.91% | +6.93% | |
| Volatility (annualized) | 16.1% | 18.7% | |
| Max Drawdown | -32.6% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Dec 27, 2001 |
VDIGX vs VXF Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.96% while VXF returned +27.53%. Year to date, VDIGX is down 0.12% versus a gain of 17.47% for VXF.
Over three years, VDIGX compounded at -3.11% per year against +19.37% for VXF; over five years the annualized figures are -2.91% and +6.93% respectively. Across the full 5-year window we track, VXF has the edge at +9.08% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VXF charges 0.05%. On a $10,000 position that is $22 vs $5 annually, a gap of $17 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 1.21% for VXF.
Holdings Overlap
VDIGX and VXF share 0 holdings out of 2509 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 VXF?
VDIGX has an expense ratio of 0.22% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VDIGX or VXF?
Over the past year VDIGX returned -8.96% vs +27.53% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.91% vs +9.08% for VXF. Past performance does not guarantee future results.
Which is riskier, VDIGX or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs VXF -59.4%.
Should I hold both VDIGX and VXF?
VDIGX and VXF have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VXF?
VDIGX and VXF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2509 unique securities.
Which pays a higher dividend, VDIGX or VXF?
VDIGX yields 1.87% while VXF yields 1.21%, so VDIGX currently pays the higher dividend yield.
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