VFMF vs. VIG
Compare and contrast key facts about Vanguard U.S. Multifactor ETF (VFMF) and Vanguard Dividend Appreciation ETF (VIG).
VFMF and VIG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFMF is managed by Vanguard. It was launched on Feb 13, 2018. VIG is a passively managed fund by Vanguard that tracks the performance of the NASDAQ US Dividend Achievers Select Index. It was launched on Apr 21, 2006.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFMF or VIG.
Key characteristics
| VFMF | VIG | |
|---|---|---|
| YTD Return | 4.61% | 2.74% |
| 1Y Return | 26.23% | 13.77% |
| 3Y Return (Ann) | 8.45% | 6.49% |
| 5Y Return (Ann) | 11.18% | 11.08% |
| Sharpe Ratio | 1.65 | 1.29 |
| Daily Std Dev | 14.57% | 9.86% |
| Max Drawdown | -41.34% | -46.81% |
| Current Drawdown | -5.64% | -4.72% |
Correlation
The correlation between VFMF and VIG is 0.85, 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
VFMF vs. VIG - Performance Comparison
In the year-to-date period, VFMF achieves a 4.61% return, which is significantly higher than VIG's 2.74% 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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VFMF vs. VIG - Expense Ratio Comparison
VFMF has a 0.18% expense ratio, which is higher than VIG's 0.06% 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%.
Risk-Adjusted Performance
VFMF vs. VIG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Multifactor ETF (VFMF) and Vanguard Dividend Appreciation ETF (VIG). 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
VFMF vs. VIG - Dividend Comparison
VFMF's dividend yield for the trailing twelve months is around 1.64%, less than VIG's 1.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFMF Vanguard U.S. Multifactor ETF | 1.64% | 1.78% | 2.21% | 1.39% | 1.56% | 1.61% | 1.22% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VIG Vanguard Dividend Appreciation ETF | 1.85% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% | 1.95% | 1.84% |
Drawdowns
VFMF vs. VIG - Drawdown Comparison
The maximum VFMF drawdown since its inception was -41.34%, smaller than the maximum VIG drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VFMF and VIG. For additional features, visit the drawdowns tool.
Volatility
VFMF vs. VIG - Volatility Comparison
Vanguard U.S. Multifactor ETF (VFMF) has a higher volatility of 3.91% compared to Vanguard Dividend Appreciation ETF (VIG) at 2.87%. This indicates that VFMF's price experiences larger fluctuations and is considered to be riskier than VIG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.