Battle of the Vanguard Dividend Funds: Does Active or Index Investing Win?

For years, Vanguard was at the leading edge of the mutual fund industry, with a heavy focus on index mutual funds, though it also offered a large selection of actively managed funds.When exchange-traded funds (ETFs) were introduced, Vanguard quickly started to offer index-focused ETFs, which makes complete sense. However, there are often overlapping offerings in the company's mix.One of the most interesting is in the dividend growth camp, with the Vanguard Dividend Appreciation Index ETF (NYSEMKT: VIG) clearly overlapping with the niche of the Vanguard Dividend Growth Fund (NASDAQMUTFUND: VDIGX). Which is better?Continue reading

Mar 9, 2025 - 12:49
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Battle of the Vanguard Dividend Funds: Does Active or Index Investing Win?

For years, Vanguard was at the leading edge of the mutual fund industry, with a heavy focus on index mutual funds, though it also offered a large selection of actively managed funds.

When exchange-traded funds (ETFs) were introduced, Vanguard quickly started to offer index-focused ETFs, which makes complete sense. However, there are often overlapping offerings in the company's mix.

One of the most interesting is in the dividend growth camp, with the Vanguard Dividend Appreciation Index ETF (NYSEMKT: VIG) clearly overlapping with the niche of the Vanguard Dividend Growth Fund (NASDAQMUTFUND: VDIGX). Which is better?

Continue reading