VDIGX vs VXUS
VDIGX vs VXUS
Vanguard Dividend Growth Fund Investor Class vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.05% | |
| AUM | $36.4B | $156.5B | |
| Dividend Yield | 1.87% | 2.60% | |
| Holdings | 55 | 8,747 | |
| YTD Return | -0.21% | +14.57% | |
| 1Y Return | -8.99% | +27.82% | |
| 3Y Return (annualized) | -3.09% | +19.27% | |
| 5Y Return (annualized) | -2.76% | +9.28% | |
| Volatility (annualized) | 16.1% | 15.1% | |
| Max Drawdown | -32.6% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Jan 26, 2011 |
VDIGX vs VXUS Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VXUS returned +27.82%. Year to date, VDIGX is down 0.21% versus a gain of 14.57% for VXUS.
Over three years, VDIGX compounded at -3.09% per year against +19.27% for VXUS; over five years the annualized figures are -2.76% and +9.28% respectively. Across the full 5-year window we track, VXUS has the edge at +4.86% annualized vs -2.76%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VXUS 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 2.60% for VXUS.
Holdings Overlap
VDIGX and VXUS share 3 holdings out of 7905 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VXUS?
VDIGX has an expense ratio of 0.22% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VDIGX or VXUS?
Over the past year VDIGX returned -8.99% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VDIGX or VXUS?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.1% for VXUS. Worst drawdown: VDIGX -32.6% vs VXUS -39.9%.
Should I hold both VDIGX and VXUS?
VDIGX and VXUS have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VXUS?
VDIGX and VXUS share 3 common holdings with a 0.3% weight overlap. Combined, they hold 7905 unique securities.
Which pays a higher dividend, VDIGX or VXUS?
VDIGX yields 1.87% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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