VIG vs VO
Vanguard Dividend Appreciation ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, VIG or VO?
Large Cap Blend against Mid Cap Blend.
VO has a lower expense ratio. VIG led over 1Y, 5Y and the full window, VO over 3Y. The two have moved almost in lockstep, correlation 0.92. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 33.4%.
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 | VIG | VO |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $111.4B | $106.6B |
| Dividend Yield | 1.48% | 1.30% |
| Holdings | 335 | 289 |
| YTD Return | +8.31% | +10.11%Best |
| 1Y Return | +11.70%Best | +11.13% |
| 3Y Return (annualized) | +15.76% | +15.98%Best |
| 5Y Return (annualized) | +10.72%Best | +7.59% |
| Volatility (annualized) | 13.3%Best | 17.4% |
| Max Drawdown | -48.2%Best | -60.3% |
| $10,000 over 5 years | $16,639Best | $14,416 |
| Top 10 Weight | 33.4% | 9.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Apr 21, 2006 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 18, 2026 (20.4 years).
VIG vs VO 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 20.4 years both funds cover.
VIG vs VO Performance
Vanguard Dividend Appreciation ETF (VIG) is an ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year VIG returned +11.70% while VO returned +11.13%. Year to date, VIG is up 8.31% versus a gain of 10.11% for VO.
Over three years, VIG compounded at +15.76% per year against +15.98% for VO; over five years the annualized figures are +10.72% and +7.59% respectively. Across the full 20-year window we track, VIG has the edge at +8.45% annualized vs +8.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 13.3% for VIG. 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 -48.2% for VIG and -60.3% for VO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VIG charges 0.04% per year while VO charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIG currently yields 1.48% against 1.30% for VO.
Holdings Overlap
13.4% of VIG's money is in holdings VO also owns. 26.5% of VO's money is in holdings VIG also owns.
VO and VIG share little of their money.
77 positions in common, counted across the 322 positions we hold weights for in VIG and 283 in VO, against full books of 335 and 289.
What only one of them owns
Our book lists 199 positions for VO that do not appear in our book for VIG (70.8% of the fund), and 223 for VIG that do not appear in VO (86.0%).
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 VIG | Weight in VO | Difference |
|---|---|---|---|
| CMICummins Inc. | 0.38% | 0.84% | 0.46% |
| PSXPhillips 66 | 0.37% | 0.82% | 0.45% |
| MSIMotorola Solutions, Inc | 0.31% | 0.70% | 0.39% |
| ALLAllstate Corp. | 0.29% | 0.65% | 0.36% |
| AJGArthur J Gallagher & Co. | 0.28% | 0.62% | 0.34% |
| GWWWw Grainger Inc. | 0.26% | 0.60% | 0.34% |
| FIXComfort Systems USA Inc. | 0.26% | 0.59% | 0.33% |
| CORCencora Inc | 0.26% | 0.55% | 0.29% |
| SRESempra Common Stock | 0.25% | 0.56% | 0.31% |
| AFLAflac Inc. | 0.25% | 0.56% | 0.31% |
26.5% of VO is already inside VIG.
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, VIG or VO?
VIG has an expense ratio of 0.04% while VO charges 0.03%. VO is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VIG or VO?
Over the past year VIG returned +11.70% vs +11.13% for VO, so VIG leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.45% vs +8.18% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or VO?
VO has been the more volatile fund at 17.4% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VO -60.3%.
Should I hold both VIG and VO?
VIG and VO have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VIG and VO?
26.5% of VO's money is in holdings VIG also owns. 26.5% of VO's is in holdings VIG also owns. They hold 77 positions in common, counted across the 322 positions we hold weights for in VIG and 283 in VO.
Which pays a higher dividend, VIG or VO?
VIG yields 1.48% while VO yields 1.30%, so VIG currently pays the higher dividend yield.
Is VO better than VIG?
VO has a lower expense ratio. VIG led over 1Y, 5Y and the full window, VO over 3Y. The two have moved almost in lockstep, correlation 0.92. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 33.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.