VFQY vs. VIG

Last updated Jun 24, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and VIG (Vanguard Dividend Appreciation ETF) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index. VFQY is actively managed, while VIG is passively managed. Over the past 5 years, VFQY returned 8.39%/yr vs 10.82%/yr for VIG. Their correlation of 0.86 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.04%/yr for VIG.

Performance

VFQY vs. VIG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) and Vanguard Dividend Appreciation ETF (VIG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFQY achieves a 8.55% return, which is significantly higher than VIG's 6.98% return.

VFQY

• 1D: -0.88%
• 1M: 1.91%
• YTD: 8.55%
• 6M: 6.89%
• 1Y: 19.65%
• 3Y*: 16.09%
• 5Y*: 8.39%
• 10Y*: —

VIG

• 1D: -0.51%
• 1M: 0.48%
• YTD: 6.98%
• 6M: 6.28%
• 1Y: 18.42%
• 3Y*: 15.85%
• 5Y*: 10.82%
• 10Y*: 13.34%

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

VFQY vs. VIG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFQY Vanguard U.S. Quality Factor ETF	8.55%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%
VIG Vanguard Dividend Appreciation ETF	6.98%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.28%

Correlation

The correlation between VFQY and VIG is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.86

The correlation between VFQY and VIG has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

VFQY vs. VIG - Sectors Allocation Comparison

Sectors	VFQY	VIG
Technology	25.8%	29.0%
Financial Services	18.9%	19.9%
Industrials	16.8%	11.3%
Consumer Cyclical	13.3%	4.4%
Consumer Defensive	9.2%	9.3%
Healthcare	8.9%	16.6%
Communication Services	2.8%	0.5%
Basic Materials	2.2%	3.3%
Energy	2.2%	3.2%
Real Estate	-	-
Utilities	-	2.9%

Return for Risk

VFQY vs. VIG — Risk / Return Rank

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

VFQY

VFQY Risk / Return Rank: 44
VFQY Sharpe Ratio Rank: 43
VFQY Sortino Ratio Rank: 44
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 45
VFQY Martin Ratio Rank: 49

VIG

VIG Risk / Return Rank: 54
VIG Sharpe Ratio Rank: 56
VIG Sortino Ratio Rank: 58
VIG Omega Ratio Rank: 54
VIG Calmar Ratio Rank: 49
VIG Martin Ratio Rank: 56

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.

VFQY vs. VIG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) 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.

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.

	VFQY	VIG	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.83	-0.38
Sortino ratio: Return per unit of downside risk	2.12	2.66	-0.54
Omega ratio: Gain probability vs. loss probability	1.25	1.33	-0.08
Calmar ratio: Return relative to maximum drawdown	2.16	2.34	-0.17
Martin ratio: Return relative to average drawdown	8.04	9.44	-1.40

VFQY vs. VIG - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.46, which is comparable to the VIG Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of VFQY and VIG, 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

VFQY vs. VIG - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, smaller than the maximum VIG drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VFQY and VIG.

Drawdown Indicators

	VFQY	VIG	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-46.81%	+9.40%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-7.91%	-1.21%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-14.95%	-5.72%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-20.39%	-5.54%
Max Drawdown (10Y) Largest decline over 10 years	—	-31.72%	—
Current Drawdown Current decline from peak	-1.29%	-1.13%	-0.16%
Average Drawdown Average peak-to-trough decline	-6.65%	-5.50%	-1.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	1.96%	+0.49%

Volatility

VFQY vs. VIG - Volatility Comparison

Vanguard U.S. Quality Factor ETF (VFQY) has a higher volatility of 3.79% compared to Vanguard Dividend Appreciation ETF (VIG) at 2.89%. This indicates that VFQY'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.

Volatility by Period

	VFQY	VIG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.79%	2.89%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	9.84%	7.70%	+2.14%
Volatility (1Y) Calculated over the trailing 1-year period	13.61%	10.14%	+3.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.36%	14.23%	+4.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.84%	16.04%	+4.80%

VFQY vs. VIG - Expense Ratio Comparison

VFQY has a 0.13% expense ratio, which is higher than VIG's 0.04% 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

VFQY vs. VIG - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 0.82%, less than VIG's 1.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFQY Vanguard U.S. Quality Factor ETF	0.82%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%
VIG Vanguard Dividend Appreciation ETF	1.47%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%

Frequently Asked Questions

Can I hold both VFQY and VIG in my portfolio?

VFQY and VIG have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFQY or VIG?

VFQY has higher volatility (3.79%) compared to VIG (2.89%). In terms of maximum drawdown, VFQY dropped -37.41% vs VIG's -46.81%.

Which ETF is better, VFQY or VIG?

On 5-year performance, VIG leads with 10.82% vs 8.39% for VFQY. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or VIG?

Over the 5-year period, VIG has performed better with a 10.82% return vs 8.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or VIG?

VIG is cheaper with a 0.04% expense ratio, compared with 0.13% for VFQY.

Which ETF pays a higher dividend yield, VFQY or VIG?

VIG has the higher dividend yield at 1.47%, compared with 0.82% for VFQY.

What is the main difference between VFQY and VIG?

VFQY is categorized as Mid Cap Blend Equities, while VIG is Dividend. Their fees differ too: 0.13% for VFQY and 0.04% for VIG.

Which has better risk-adjusted returns?

VIG currently has the higher Sharpe Ratio (1.83 vs 1.46), 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.