VDGR.AX vs. VHY.AX

Last updated Jun 4, 2026

VDGR.AX (Vanguard Diversified Growth Index ETF) and VHY.AX (Vanguard Australian Shares High Yield ETF) are both exchange-traded funds - VDGR.AX is a Diversified Portfolio fund tracking the Growth Composite Index, while VHY.AX is a Dividend fund tracking the FTSE Australia High Dividend Yield Index. Both are passively managed. Over the past 5 years, VDGR.AX returned 7.10%/yr vs 11.30%/yr for VHY.AX. A 0.73 correlation means they provide meaningful diversification when combined. VDGR.AX charges 0.27%/yr vs 0.25%/yr for VHY.AX.

Performance

VDGR.AX vs. VHY.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard Diversified Growth Index ETF (VDGR.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDGR.AX achieves a 3.36% return, which is significantly lower than VHY.AX's 9.84% return.

VDGR.AX

• 1D: 0.54%
• 1M: 2.92%
• YTD: 3.36%
• 6M: 4.23%
• 1Y: 11.94%
• 3Y*: 11.80%
• 5Y*: 7.10%
• 10Y*: —

VHY.AX

• 1D: 0.95%
• 1M: 2.00%
• YTD: 9.84%
• 6M: 11.48%
• 1Y: 20.71%
• 3Y*: 16.02%
• 5Y*: 11.30%
• 10Y*: 10.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VDGR.AX vs. VHY.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDGR.AX Vanguard Diversified Growth Index ETF	3.36%	11.12%	14.15%	12.94%	-10.19%	12.28%	7.09%	19.35%	-0.78%	1.14%
VHY.AX Vanguard Australian Shares High Yield ETF	9.84%	14.77%	11.78%	11.14%	8.51%	16.65%	1.73%	20.44%	-7.53%	0.73%

Correlation

The correlation between VDGR.AX and VHY.AX is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Nov 21, 2017	0.73

The correlation between VDGR.AX and VHY.AX has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

Return for Risk

VDGR.AX vs. VHY.AX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VDGR.AX

VDGR.AX Risk / Return Rank: 44
VDGR.AX Sharpe Ratio Rank: 45
VDGR.AX Sortino Ratio Rank: 44
VDGR.AX Omega Ratio Rank: 46
VDGR.AX Calmar Ratio Rank: 40
VDGR.AX Martin Ratio Rank: 46

VHY.AX

VHY.AX Risk / Return Rank: 64
VHY.AX Sharpe Ratio Rank: 59
VHY.AX Sortino Ratio Rank: 61
VHY.AX Omega Ratio Rank: 58
VHY.AX Calmar Ratio Rank: 81
VHY.AX Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VDGR.AX vs. VHY.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Diversified Growth Index ETF (VDGR.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VDGR.AX	VHY.AX	Difference
Sharpe ratio: Return per unit of total volatility	1.55	2.00	-0.45
Sortino ratio: Return per unit of downside risk	2.19	2.86	-0.67
Omega ratio: Gain probability vs. loss probability	1.29	1.36	-0.07
Calmar ratio: Return relative to maximum drawdown	1.98	4.24	-2.26
Martin ratio: Return relative to average drawdown	7.45	11.04	-3.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDGR.AX vs. VHY.AX - Sharpe Ratio Comparison

The current VDGR.AX Sharpe Ratio is 1.55, which is comparable to the VHY.AX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of VDGR.AX and VHY.AX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VDGR.AX	VHY.AX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.55	2.00	-0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.89	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.74	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.68	+0.14

Drawdowns

VDGR.AX vs. VHY.AX - Drawdown Comparison

The maximum VDGR.AX drawdown since its inception was -23.90%, smaller than the maximum VHY.AX drawdown of -35.54%. Use the drawdown chart below to compare losses from any high point for VDGR.AX and VHY.AX.

Drawdown Indicators

	VDGR.AX	VHY.AX	Difference
Max Drawdown Largest peak-to-trough decline	-23.90%	-35.54%	+11.64%
Max Drawdown (1Y) Largest decline over 1 year	-5.99%	-4.84%	-1.15%
Max Drawdown (3Y) Largest decline over 3 years	-10.00%	-11.68%	+1.68%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	-14.41%	-1.38%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.54%	—
Current Drawdown Current decline from peak	0.00%	-1.17%	+1.17%
Average Drawdown Average peak-to-trough decline	-3.33%	-4.62%	+1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.60%	1.87%	-0.27%

Volatility

VDGR.AX vs. VHY.AX - Volatility Comparison

The current volatility for Vanguard Diversified Growth Index ETF (VDGR.AX) is 2.38%, while Vanguard Australian Shares High Yield ETF (VHY.AX) has a volatility of 3.27%. This indicates that VDGR.AX experiences smaller price fluctuations and is considered to be less risky than VHY.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDGR.AX	VHY.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.38%	3.27%	-0.89%
Volatility (6M) Calculated over the trailing 6-month period	6.22%	8.07%	-1.85%
Volatility (1Y) Calculated over the trailing 1-year period	7.67%	10.29%	-2.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.93%	12.64%	-3.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.65%	14.31%	-4.66%

VDGR.AX vs. VHY.AX - Expense Ratio Comparison

VDGR.AX has a 0.27% expense ratio, which is higher than VHY.AX's 0.25% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VDGR.AX vs. VHY.AX - Dividend Comparison

VDGR.AX's dividend yield for the trailing twelve months is around 3.17%, less than VHY.AX's 5.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDGR.AX Vanguard Diversified Growth Index ETF	3.17%	3.04%	2.57%	2.36%	3.91%	8.07%	5.20%	2.91%	2.05%	0.00%	0.00%	0.00%
VHY.AX Vanguard Australian Shares High Yield ETF	5.39%	8.36%	5.32%	4.85%	5.74%	4.77%	3.55%	5.35%	9.07%	7.49%	5.16%	8.07%

Frequently Asked Questions

Can I hold both VDGR.AX and VHY.AX in my portfolio?

VDGR.AX and VHY.AX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDGR.AX or VHY.AX?

On fees, VHY.AX is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VDGR.AX or VHY.AX?

VHY.AX is cheaper with a 0.25% expense ratio, compared with 0.27% for VDGR.AX.

What is the main difference between VDGR.AX and VHY.AX?

VDGR.AX is categorized as Diversified Portfolio, while VHY.AX is Dividend. VDGR.AX tracks Growth Composite Index, while VHY.AX tracks FTSE Australia High Dividend Yield Index. Their fees differ too: 0.27% for VDGR.AX and 0.25% for VHY.AX.