VDIGX vs. CAIFX

Last updated Jun 25, 2026

VDIGX (Vanguard Dividend Growth Fund) and CAIFX (American Funds Capital Income Builder Fund Class F-2) are both Dividend funds. Both are actively managed. Over the past 10 years, VDIGX returned 12.43%/yr vs 8.38%/yr for CAIFX. Their correlation of 0.86 suggests significant overlap in exposure. VDIGX charges 0.22%/yr vs 0.37%/yr for CAIFX.

Performance

VDIGX vs. CAIFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Growth Fund (VDIGX) and American Funds Capital Income Builder Fund Class F-2 (CAIFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDIGX achieves a 1.48% return, which is significantly lower than CAIFX's 7.38% return. Over the past 10 years, VDIGX has outperformed CAIFX with an annualized return of 12.43%, while CAIFX has yielded a comparatively lower 8.38% annualized return.

VDIGX

• 1D: -0.77%
• 1M: -0.26%
• YTD: 1.48%
• 6M: 0.59%
• 1Y: 7.72%
• 3Y*: 13.18%
• 5Y*: 9.64%
• 10Y*: 12.43%

CAIFX

• 1D: -0.18%
• 1M: -0.03%
• YTD: 7.38%
• 6M: 7.05%
• 1Y: 16.58%
• 3Y*: 15.18%
• 5Y*: 8.77%
• 10Y*: 8.38%

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

VDIGX vs. CAIFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDIGX Vanguard Dividend Growth Fund	1.48%	11.11%	20.84%	8.11%	-4.89%	24.86%	12.04%	30.94%	0.08%	19.32%
CAIFX American Funds Capital Income Builder Fund Class F-2	7.38%	20.63%	10.47%	9.21%	-6.95%	15.26%	3.41%	17.49%	-7.10%	14.19%

Correlation

The correlation between VDIGX and CAIFX is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Aug 1, 2008	0.86

The correlation between VDIGX and CAIFX has been stable across timeframes, ranging from 0.77 to 0.86 - a consistent structural relationship.

Return for Risk

VDIGX vs. CAIFX — Risk / Return Rank

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

VDIGX

VDIGX Risk / Return Rank: 12
VDIGX Sharpe Ratio Rank: 12
VDIGX Sortino Ratio Rank: 12
VDIGX Omega Ratio Rank: 11
VDIGX Calmar Ratio Rank: 10
VDIGX Martin Ratio Rank: 14

CAIFX

CAIFX Risk / Return Rank: 64
CAIFX Sharpe Ratio Rank: 68
CAIFX Sortino Ratio Rank: 68
CAIFX Omega Ratio Rank: 67
CAIFX Calmar Ratio Rank: 59
CAIFX Martin Ratio Rank: 60

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.

VDIGX vs. CAIFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Growth Fund (VDIGX) and American Funds Capital Income Builder Fund Class F-2 (CAIFX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VDIGX	CAIFX	Difference
Sharpe ratio: Return per unit of total volatility	0.85	2.13	-1.28
Sortino ratio: Return per unit of downside risk	1.30	3.03	-1.72
Omega ratio: Gain probability vs. loss probability	1.15	1.40	-0.25
Calmar ratio: Return relative to maximum drawdown	0.95	2.71	-1.75
Martin ratio: Return relative to average drawdown	3.69	10.73	-7.04

VDIGX vs. CAIFX - Sharpe Ratio Comparison

The current VDIGX Sharpe Ratio is 0.85, which is lower than the CAIFX Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of VDIGX and CAIFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VDIGX vs. CAIFX - Drawdown Comparison

The maximum VDIGX drawdown since its inception was -45.23%, which is greater than CAIFX's maximum drawdown of -36.83%. Use the drawdown chart below to compare losses from any high point for VDIGX and CAIFX.

Drawdown Indicators

	VDIGX	CAIFX	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-36.83%	-8.40%
Max Drawdown (1Y) Largest decline over 1 year	-9.09%	-6.47%	-2.62%
Max Drawdown (3Y) Largest decline over 3 years	-10.23%	-8.88%	-1.35%
Max Drawdown (5Y) Largest decline over 5 years	-16.18%	-17.51%	+1.33%
Max Drawdown (10Y) Largest decline over 10 years	-32.98%	-25.27%	-7.71%
Current Drawdown Current decline from peak	-1.80%	-0.84%	-0.96%
Average Drawdown Average peak-to-trough decline	-6.64%	-4.70%	-1.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	1.63%	+0.71%

Volatility

VDIGX vs. CAIFX - Volatility Comparison

Vanguard Dividend Growth Fund (VDIGX) has a higher volatility of 3.20% compared to American Funds Capital Income Builder Fund Class F-2 (CAIFX) at 2.48%. This indicates that VDIGX's price experiences larger fluctuations and is considered to be riskier than CAIFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDIGX	CAIFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.20%	2.48%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	7.84%	6.61%	+1.23%
Volatility (1Y) Calculated over the trailing 1-year period	10.23%	8.23%	+2.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.88%	10.00%	+3.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.69%	10.80%	+4.89%

VDIGX vs. CAIFX - Expense Ratio Comparison

VDIGX has a 0.22% expense ratio, which is lower than CAIFX's 0.37% expense ratio.

Dividends

VDIGX vs. CAIFX - Dividend Comparison

VDIGX's dividend yield for the trailing twelve months is around 24.20%, more than CAIFX's 7.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAIFX American Funds Capital Income Builder Fund Class F-2	7.52%	7.93%	5.98%	3.69%	3.66%	3.36%	3.60%	4.31%	3.76%	4.63%	3.73%	3.82%
VDIGX Vanguard Dividend Growth Fund	24.20%	21.90%	21.94%	2.29%	6.06%	5.45%	2.83%	4.70%	8.72%	5.16%	2.86%	5.70%

Frequently Asked Questions

Can I hold both VDIGX and CAIFX in my portfolio?

VDIGX and CAIFX have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDIGX or CAIFX?

VDIGX has higher volatility (3.20%) compared to CAIFX (2.48%). In terms of maximum drawdown, VDIGX dropped -45.23% vs CAIFX's -36.83%.

Which has better risk-adjusted returns?

CAIFX currently has the higher Sharpe Ratio (2.13 vs 0.85), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.