VFIFX vs. VDIGX
Compare and contrast key facts about Vanguard Target Retirement 2050 Fund (VFIFX) and Vanguard Dividend Growth Fund (VDIGX).
VFIFX is managed by Vanguard. It was launched on Jun 7, 2006. VDIGX is managed by Vanguard. It was launched on May 15, 1992.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFIFX or VDIGX.
Key characteristics
| VFIFX | VDIGX | |
|---|---|---|
| YTD Return | 7.26% | 5.19% |
| 1Y Return | 19.96% | 12.70% |
| 3Y Return (Ann) | 4.61% | 6.68% |
| 5Y Return (Ann) | 9.97% | 11.16% |
| 10Y Return (Ann) | 8.55% | 11.09% |
| Sharpe Ratio | 1.87 | 1.40 |
| Daily Std Dev | 11.00% | 9.07% |
| Max Drawdown | -51.68% | -45.23% |
| Current Drawdown | 0.00% | -1.07% |
Correlation
The correlation between VFIFX and VDIGX is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VFIFX vs. VDIGX - Performance Comparison
In the year-to-date period, VFIFX achieves a 7.26% return, which is significantly higher than VDIGX's 5.19% return. Over the past 10 years, VFIFX has underperformed VDIGX with an annualized return of 8.55%, while VDIGX has yielded a comparatively higher 11.09% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFIFX vs. VDIGX - Expense Ratio Comparison
VFIFX has a 0.08% expense ratio, which is lower than VDIGX's 0.27% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VFIFX vs. VDIGX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2050 Fund (VFIFX) and Vanguard Dividend Growth Fund (VDIGX). 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.
Dividends
VFIFX vs. VDIGX - Dividend Comparison
VFIFX's dividend yield for the trailing twelve months is around 2.06%, less than VDIGX's 3.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFIFX Vanguard Target Retirement 2050 Fund | 2.06% | 2.21% | 2.38% | 12.83% | 1.84% | 2.20% | 2.51% | 1.92% | 2.04% | 2.36% | 2.03% | 1.84% |
VDIGX Vanguard Dividend Growth Fund | 3.19% | 2.29% | 6.06% | 5.45% | 2.83% | 4.70% | 8.84% | 5.16% | 2.86% | 5.69% | 3.41% | 2.28% |
Drawdowns
VFIFX vs. VDIGX - Drawdown Comparison
The maximum VFIFX drawdown since its inception was -51.68%, which is greater than VDIGX's maximum drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for VFIFX and VDIGX. For additional features, visit the drawdowns tool.
Volatility
VFIFX vs. VDIGX - Volatility Comparison
Vanguard Target Retirement 2050 Fund (VFIFX) has a higher volatility of 2.94% compared to Vanguard Dividend Growth Fund (VDIGX) at 1.72%. This indicates that VFIFX's price experiences larger fluctuations and is considered to be riskier than VDIGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.