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VDIGX vs. VSS – A Comprehensive Comparison

Discover a comparison of VDIGX vs. VSS to determine which is best for you! Use the table below to compare their key characteristics.

Last Updated: 1/15/2024

VDIGX vs. VSS Key Characteristics

1-Year Annual Return8.10%15.25%
5-Year Annual Return13.50%6.90%
Expense Ratio0.30%0.07%
Dividend Yield1.56%7.25%
Number of Holdings424616

Overview of VDIGX

The Vanguard Dividend Growth Fund, denoted by the ticker symbol VDIGX, is a mutual fund managed by Vanguard. This fund is designed to provide investors with a focus on dividend growth rather than high dividend yield. VDIGX primarily invests in high-quality companies that have the potential to grow their dividends over time, which may include large-cap and mid-cap stocks across various sectors. The objective of VDIGX is to seek income growth and moderate capital appreciation.

Overview of VSS

The Vanguard FTSE All-World ex-US Small-Cap ETF, trading under the ticker symbol VSS, is an exchange-traded fund managed by Vanguard. This ETF is designed to track the performance of the FTSE Global Small Cap ex-US Index, which includes small-cap companies in both developed and emerging markets, excluding the United States. VSS provides investors with diversified exposure to international small-cap stocks, offering the potential for growth and diversification outside of the U.S. market.

Performance Comparison of VDIGX vs. VSS

The total return performance including dividends is crucial to consider when analyzing different investment funds. 

As of 1/15/2024, VDIGX has a one year annualized return of 8.10%, while VSS has a five year annualized return of 15.25%. 

VDIGX vs. VSS Dividend Yield

Both VDIGX and VSS pay dividends to their shareholders from the earnings of their underlying stocks. The dividend yield is a measure of how much a company pays in dividends relative to its share price.

As of 1/15/2024 the dividend yield of VDIGX is 1.56%, while the dividend yield of  VSS is 7.25%. 

VDIGX vs. VSS Expense Ratios

The expense ratio is a measure of how much an ETF charges its investors for managing the fund. It is expressed as a percentage of the fund’s assets per year.

The expense ratio is one of the most important factors to consider when choosing an ETF because it directly affects your returns over time. The lower the expense ratio, the more money you get to keep from your investment.

As of 1/15/2024 VDIGX has an expense ratio of 0.30%, while VSS has an expense ratio of 0.07%. 

VDIGX vs. VSS Holdings

A fund’s holdings are the basket of individual securities that it owns and tracks. It is crucial for investors to analyze a fund’s holdings because they are effectively what you are investing in by purchasing the fund. 

As of 1/15/2024 VDIGX holds 42 securities, while VSS holds 4616. 

Mutual Funds vs. ETFs

When comparing investment funds, you may be confused about the difference between an ETF and a mutual fund. Keep in mind, an index fund is a specific type of mutual fund. ETFs are tradeable during the stock market hours, while mutual funds only update once per day.

etf vs mutual fund

Mutual funds are pooled investment vehicles that are managed by a fund company or an investment advisor. They issue and redeem shares directly to investors at the end of each trading day based on their net asset value (NAV). Investors can buy and sell mutual fund shares through the fund company or a broker.

ETFs are also pooled investment vehicles that are managed by a fund company or an investment advisor. However, they trade like stocks on an exchange throughout the trading day at market prices that may differ from their NAV. Investors can buy and sell ETF shares through a broker.

Some of the advantages and disadvantages of mutual funds vs ETFs are:

  • Mutual funds may offer more convenience and flexibility for investors who want to invest a fixed amount of money or set up automatic investments or withdrawals.
  • Mutual funds may require a larger minimum investment.
  • ETFs may incur bid-ask spreads and premiums or discounts to their NAV, which can affect their trading efficiency and performance.
  • Mutual funds may be less tax-efficient than ETFs, as they may distribute more capital gains to their shareholders due to their redemption mechanism.
  • ETFs may be more tax-efficient than mutual funds, as they may avoid realizing capital gains through their creation and redemption mechanism.

VDIGX vs. VSS – Bottom Line

Ultimately, both VDIGX and VSS are solid investment choices. The choice between the two ultimately depends on the exposure you want and the amount of risk you are willing to take. 

Hopefully, the information in this article helps you decide which is better for your portfolio. To continue your research, check out our other fund comparison articles as well!

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare.

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Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

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Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

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As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget. Alternatively, sign up for a free TradingView account and use the main website for a better experience.

The Best Brokers For Investing

Whether you want to invest in VDIGX or VSS, you will need to sign up with a reputable brokerage account. There are many options available, but here are our top picks for investors:

1- Robinhood

Robinhood is a popular choice for investors who want a modern and simple way to invest in the stock market. Benefits of investing on Robinhood include:

  • Auto invest daily, weekly, or monthly into your favorite ETFs
  • Invest as little as $1 a day with fractional shares and auto-deposit
  • Fun and simple app to track your investments
  • Commission-free stock and option trading
  • You can usually get a free stock when you use my Robinhood referral code

2- tastytrade

tastytrade is an excellent brokerage for both investors and active traders. tastytrade offers some of the best commissions around for options and futures trading, plus stock trading is free. Benefits of investing using tastytrade include:

  • Invest as little as $1 with fractional shares
  • Commission-free stock trading
  • Competitive options and futures trading prices

Consider using my referral link to sign up for tastytrade, and you may receive some type of bonus.

3- Schwab

Schwab recently acquired TD Ameritrade along with the thinkorswim platform, making it an excellent brokerage for investors and active traders. thinkorswim is an amazing trading platform, and Schwab is a well-known financial institution perfect for investing. Benefits of using Schwab include:

  • Access the thinkorswim trading platform
  • Commission-free stock trading
  • Fractional share availability

Disclousure: This post contains affiliate or referral links to TradingView, Robinhood, and tastytrade I may be compensated for you if use them.

The Best Investing Books

As you continue researching VDIGX and VSS, you will learn there is no “perfect” investment. However, knowledge is power, and you can learn more about investing by reading books written by the best investors who ever lived. Here are some excellent investing books you should check out to help guide you through your investment journey:

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