VIG vs. VDC

Last updated Jun 4, 2026

VIG (Vanguard Dividend Appreciation ETF) and VDC (Vanguard Consumer Staples ETF) are both exchange-traded funds - VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index, while VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index. Both are passively managed. Over the past 10 years, VIG returned 13.23%/yr vs 7.59%/yr for VDC. A 0.78 correlation means they provide meaningful diversification when combined. VIG charges 0.04%/yr vs 0.09%/yr for VDC.

Performance

VIG vs. VDC - Performance Comparison

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

Returns By Period

In the year-to-date period, VIG achieves a 7.57% return, which is significantly higher than VDC's 5.75% return. Over the past 10 years, VIG has outperformed VDC with an annualized return of 13.23%, while VDC has yielded a comparatively lower 7.59% annualized return.

VIG

• 1D: -0.19%
• 1M: 3.79%
• YTD: 7.57%
• 6M: 6.99%
• 1Y: 19.63%
• 3Y*: 16.49%
• 5Y*: 10.62%
• 10Y*: 13.23%

VDC

• 1D: 0.61%
• 1M: -3.32%
• YTD: 5.75%
• 6M: 4.31%
• 1Y: 1.24%
• 3Y*: 7.43%
• 5Y*: 6.06%
• 10Y*: 7.59%

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

VIG vs. VDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	7.57%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
VDC Vanguard Consumer Staples ETF	5.75%	2.17%	13.30%	2.38%	-1.79%	17.64%	10.86%	26.11%	-7.79%	11.85%

Correlation

The correlation between VIG and VDC is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Apr 28, 2006	0.78

Over the past year, the correlation between VIG and VDC has dropped to 0.32 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

VIG vs. VDC - Sectors Allocation Comparison

Sectors	VIG	VDC
Technology	26.2%	-
Financial Services	20.6%	-
Healthcare	16.5%	0.0%
Industrials	11.8%	0.3%
Consumer Defensive	10.1%	97.5%
Consumer Cyclical	4.7%	1.8%
Energy	3.5%	-
Basic Materials	3.5%	0.3%
Utilities	3.2%	-
Communication Services	0.5%	-
Real Estate	-	-

Return for Risk

VIG vs. VDC — Risk / Return Rank

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

VIG

VIG Risk / Return Rank: 56
VIG Sharpe Ratio Rank: 57
VIG Sortino Ratio Rank: 60
VIG Omega Ratio Rank: 56
VIG Calmar Ratio Rank: 50
VIG Martin Ratio Rank: 56

VDC

VDC Risk / Return Rank: 9
VDC Sharpe Ratio Rank: 10
VDC Sortino Ratio Rank: 9
VDC Omega Ratio Rank: 9
VDC Calmar Ratio Rank: 10
VDC Martin Ratio Rank: 10

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.

VIG vs. VDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) and Vanguard Consumer Staples ETF (VDC). 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.

	VIG	VDC	Difference
Sharpe ratio: Return per unit of total volatility	1.97	0.10	+1.87
Sortino ratio: Return per unit of downside risk	2.88	0.23	+2.65
Omega ratio: Gain probability vs. loss probability	1.35	1.03	+0.33
Calmar ratio: Return relative to maximum drawdown	2.49	0.13	+2.36
Martin ratio: Return relative to average drawdown	10.06	0.28	+9.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIG vs. VDC - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.97, which is higher than the VDC Sharpe Ratio of 0.10. The chart below compares the historical Sharpe Ratios of VIG and VDC, 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

	VIG	VDC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.97	0.10	+1.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.46	+0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.52	+0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.66	-0.06

Drawdowns

VIG vs. VDC - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, which is greater than VDC's maximum drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for VIG and VDC.

Drawdown Indicators

	VIG	VDC	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-34.24%	-12.57%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-9.28%	+1.37%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-11.78%	-3.17%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-16.55%	-3.84%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-25.31%	-6.41%
Current Drawdown Current decline from peak	-0.19%	-8.52%	+8.33%
Average Drawdown Average peak-to-trough decline	-5.51%	-3.73%	-1.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	4.49%	-2.53%

Volatility

VIG vs. VDC - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.19%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 4.09%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	VDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.19%	4.09%	-1.90%
Volatility (6M) Calculated over the trailing 6-month period	7.57%	9.76%	-2.19%
Volatility (1Y) Calculated over the trailing 1-year period	10.01%	12.36%	-2.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.23%	13.13%	+1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.05%	14.64%	+1.41%

VIG vs. VDC - Expense Ratio Comparison

VIG has a 0.04% expense ratio, which is lower than VDC's 0.09% 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%.

Dividends

VIG vs. VDC - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.47%, less than VDC's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDC Vanguard Consumer Staples ETF	2.17%	2.26%	2.33%	2.65%	2.37%	2.14%	2.50%	2.44%	2.78%	2.52%	2.39%	2.55%
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 VIG and VDC in my portfolio?

VIG and VDC have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIG or VDC?

VDC has higher volatility (4.09%) compared to VIG (2.19%). In terms of maximum drawdown, VIG dropped -46.81% vs VDC's -34.24%.

Which ETF is better, VIG or VDC?

On 10-year performance, VIG leads with 13.23% vs 7.59% for VDC. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or VDC?

Over the 10-year period, VIG has performed better with a 13.23% return vs 7.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or VDC?

VIG is cheaper with a 0.04% expense ratio, compared with 0.09% for VDC.

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

VDC has the higher dividend yield at 2.17%, compared with 1.47% for VIG.

What is the main difference between VIG and VDC?

VIG is categorized as Dividend, while VDC is Consumer Staples Equities. VIG tracks S&P U.S. Dividend Growers Index, while VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index. Their fees differ too: 0.04% for VIG and 0.09% for VDC.

Which has better risk-adjusted returns?

VIG currently has the higher Sharpe Ratio (1.97 vs 0.10), 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.