VIG vs. VDIGX

Last updated Jun 21, 2026

VIG (Vanguard Dividend Appreciation ETF) and VDIGX (Vanguard Dividend Growth Fund) are both Dividend funds from Vanguard. VIG is passively managed, while VDIGX is actively managed. Over the past 10 years, VIG returned 13.17%/yr vs 12.33%/yr for VDIGX. With a 0.95 correlation, they move nearly in lockstep. VIG charges 0.04%/yr vs 0.22%/yr for VDIGX.

Performance

VIG vs. VDIGX - Performance Comparison

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

Returns By Period

In the year-to-date period, VIG achieves a 7.43% return, which is significantly higher than VDIGX's 2.69% return. Over the past 10 years, VIG has outperformed VDIGX with an annualized return of 13.17%, while VDIGX has yielded a comparatively lower 12.33% annualized return.

VIG

• 1D: 0.25%
• 1M: 1.79%
• YTD: 7.43%
• 6M: 7.43%
• 1Y: 20.16%
• 3Y*: 15.47%
• 5Y*: 11.39%
• 10Y*: 13.17%

VDIGX

• 1D: 0.51%
• 1M: 1.92%
• YTD: 2.69%
• 6M: 2.86%
• 1Y: 10.98%
• 3Y*: 13.24%
• 5Y*: 10.35%
• 10Y*: 12.33%

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

VIG vs. VDIGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	7.43%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
VDIGX Vanguard Dividend Growth Fund	2.69%	11.11%	20.84%	8.11%	-4.89%	24.86%	12.04%	30.94%	0.08%	19.32%

Correlation

The correlation between VIG and VDIGX is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Apr 27, 2006	0.95

The correlation between VIG and VDIGX has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

VIG vs. VDIGX - Sectors Allocation Comparison

Sectors	VIG	VDIGX
Technology	29.0%	23.6%
Financial Services	19.9%	20.1%
Healthcare	16.6%	16.1%
Industrials	11.3%	14.9%
Consumer Defensive	9.3%	7.9%
Consumer Cyclical	4.4%	10.7%
Basic Materials	3.3%	2.6%
Energy	3.2%	1.1%
Utilities	2.9%	0.5%
Communication Services	0.5%	2.3%
Real Estate	-	-

Return for Risk

VIG vs. VDIGX — Risk / Return Rank

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

VIG

VIG Risk / Return Rank: 61
VIG Sharpe Ratio Rank: 63
VIG Sortino Ratio Rank: 66
VIG Omega Ratio Rank: 61
VIG Calmar Ratio Rank: 54
VIG Martin Ratio Rank: 60

VDIGX

VDIGX Risk / Return Rank: 17
VDIGX Sharpe Ratio Rank: 17
VDIGX Sortino Ratio Rank: 18
VDIGX Omega Ratio Rank: 15
VDIGX Calmar Ratio Rank: 14
VDIGX Martin Ratio Rank: 20

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. VDIGX - Risk-Adjusted Trends Comparison

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

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.

	VIG	VDIGX	Difference
Sharpe ratio: Return per unit of total volatility	1.99	1.05	+0.93
Sortino ratio: Return per unit of downside risk	2.87	1.60	+1.28
Omega ratio: Gain probability vs. loss probability	1.35	1.19	+0.17
Calmar ratio: Return relative to maximum drawdown	2.54	1.18	+1.36
Martin ratio: Return relative to average drawdown	10.27	4.58	+5.69

VIG vs. VDIGX - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.99, which is higher than the VDIGX Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of VIG and VDIGX, 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

VIG vs. VDIGX - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, roughly equal to the maximum VDIGX drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for VIG and VDIGX.

Drawdown Indicators

	VIG	VDIGX	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-45.23%	-1.58%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-9.09%	+1.18%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-10.23%	-4.72%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-16.18%	-4.21%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-32.98%	+1.26%
Current Drawdown Current decline from peak	-0.72%	-0.63%	-0.09%
Average Drawdown Average peak-to-trough decline	-5.50%	-6.64%	+1.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	2.34%	-0.39%

Volatility

VIG vs. VDIGX - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.86%, while Vanguard Dividend Growth Fund (VDIGX) has a volatility of 3.11%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than VDIGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	VDIGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.86%	3.11%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	7.71%	7.81%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	10.13%	10.22%	-0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.24%	13.89%	+0.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	15.71%	+0.35%

VIG vs. VDIGX - Expense Ratio Comparison

VIG has a 0.04% expense ratio, which is lower than VDIGX's 0.22% 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. VDIGX - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.47%, less than VDIGX's 23.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDIGX Vanguard Dividend Growth Fund	23.91%	21.90%	21.94%	2.29%	6.06%	5.45%	2.83%	4.70%	8.72%	5.16%	2.86%	5.70%
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 VDIGX in my portfolio?

With a correlation of 0.93, VIG and VDIGX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VIG or VDIGX?

VDIGX has higher volatility (3.11%) compared to VIG (2.86%). In terms of maximum drawdown, VIG dropped -46.81% vs VDIGX's -45.23%.

Which has better risk-adjusted returns?

VIG currently has the higher Sharpe Ratio (1.99 vs 1.05), 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.