VDIGX vs VYM
Vanguard Dividend Growth Fund Investor Class vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.04% | |
| AUM | $36.4B | $79.0B | |
| Dividend Yield | 1.87% | 2.86% | |
| Holdings | 55 | 568 | |
| YTD Return | -0.21% | +15.80% | |
| 1Y Return | -8.99% | +26.12% | |
| 3Y Return (annualized) | -3.09% | +18.25% | |
| 5Y Return (annualized) | -2.76% | +12.51% | |
| Volatility (annualized) | 16.1% | 14.6% | |
| Max Drawdown | -32.6% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Nov 10, 2006 |
VDIGX vs VYM Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VDIGX returned -8.99% while VYM returned +26.12%. Year to date, VDIGX is down 0.21% versus a gain of 15.80% for VYM.
Over three years, VDIGX compounded at -3.09% per year against +18.25% for VYM; over five years the annualized figures are -2.76% and +12.51% respectively. Across the full 5-year window we track, VYM has the edge at +7.07% 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.22% per year while VYM charges 0.04%. On a $10,000 position that is $22 vs $4 annually, a gap of $18 per year that compounds over a long holding period. On income, VDIGX currently yields 1.87% against 2.86% for VYM.
Holdings Overlap
VDIGX and VYM share 23 holdings out of 582 unique holdings combined, representing a 24.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDIGX or VYM?
VDIGX has an expense ratio of 0.22% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, VDIGX or VYM?
Over the past year VDIGX returned -8.99% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -2.76% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VDIGX or VYM?
VDIGX has been the more volatile fund at 16.1% annualized versus 14.6% for VYM. Worst drawdown: VDIGX -32.6% vs VYM -58.8%.
Should I hold both VDIGX and VYM?
VDIGX and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VYM?
VDIGX and VYM share 23 common holdings with a 24.5% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, VDIGX or VYM?
VDIGX yields 1.87% while VYM yields 2.86%, so VYM 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.