Wealthy PotVIG vs VOO: Over 90% of VIG Is Already Inside VOO
VIG is a roughly 330-stock slice of the US market chosen for raising its dividend every year for at least ten years, and more than 90% of it is in stocks VOO already owns. Going the other way, those shared stocks are only about 43% of VOO, by our calculation from the funds' latest SEC holdings filings. VIG costs 0.04% a year against VOO's 0.03%, yields a little more (1.51% against 1.00%), and has been less volatile. It has also returned less: 2.34 percentage points a year less over the ten years to 30 June 2026. VOO is the core holding. VIG is a quality-and-dividend tilt on top of it, or instead of part of it.
Table of Contents
The Short Answer
- Overlap: 95.4% of VIG is in VOO stocks. Those shared stocks are 43.1% of VOO, and the overlap (the smaller weight of each shared stock, summed) is 41.0%. That is our calculation from the funds' SEC holdings filings for 31 July 2026 (VIG) and 30 June 2026 (VOO).
- VOO is a hair cheaper. 0.03% against 0.04% in Vanguard's 2026 prospectuses. On $10,000 that is $3 against $4 a year.
- VIG yields more, but not by much. 30-day SEC yield on 30 September 2026: VIG 1.51%, VOO 1.00%.
- VOO has returned more. To 30 June 2026 at NAV, VOO returned 15.47% a year over ten years and VIG 13.13%. VOO also led over one, three and five years, and again to 30 September 2026.
- VIG has been steadier. Its three-year standard deviation was 10.68% against VOO's 13.06% on 30 June 2026.
- The big gap is a handful of companies. VIG owns Apple, Microsoft and Broadcom, but no Nvidia, Alphabet, Amazon, Meta or Tesla. Those five were about 21% of VOO.
How Much of VIG Is Already in VOO
Both funds hold large US companies, and most of VIG's weight sits in S&P 500 members. So nearly all of VIG is already in VOO, while most of VOO is not in VIG.
| Overlap measure | Result |
|---|---|
| Holdings in common | 169 |
| Share of VIG's weight in stocks VOO also owns | 95.4% |
| Share of VOO's weight in stocks VIG also owns | 43.1% |
| Overlap (sum of the smaller weight in each shared stock) | 41.0% |
The shared stocks carry very different weights:
| Stock | Weight in VIG | Weight in VOO |
|---|---|---|
| Broadcom | 4.63% | 2.77% |
| Apple | 4.45% | 6.59% |
| Microsoft | 4.34% | 4.30% |
| JPMorgan Chase | 4.07% | 1.26% |
| Eli Lilly | 3.93% | 1.47% |
| Exxon Mobil | 2.78% | 0.88% |
| Johnson & Johnson | 2.67% | 0.95% |
| Visa | 2.45% | 0.87% |
| Walmart | 2.11% | 0.77% |
What VOO owns and VIG does not is the more telling list: Nvidia (7.51% of VOO), Alphabet (5.84%), Amazon (3.62%), Micron (2.02%), Meta (1.92%), Tesla (1.84%) and AMD (1.47%). None of them appears in VIG's July 2026 filing.
VIG's Rulebook: Ten Years of Raises, Minus the Top Yielders
VIG tracks the S&P U.S. Dividend Growers Index, which its May 2026 summary prospectus describes as "a modified market capitalization-weighted index which consists of common stocks of U.S. companies that have a record of increasing their dividends over time (excluding real estate trusts ('REITs'))." The statutory prospectus gives the two rules that matter:
"An index that measures the performance of U.S. companies that have followed a policy of consistently increasing dividends every year for at least 10 consecutive years. The index excludes the top 25% of highest-yielding eligible companies from the index."
Two consequences follow. First, a company has to have raised its dividend every year for a decade, so firms that pay nothing, or only started paying recently, are out. Second, the highest yielders among the qualifiers are cut, which steers the fund away from the stocks with the biggest payouts relative to price. The result yields more than the S&P 500, but much less than a high-yield fund such as VYM (2.35%) or SCHD (3.37%).
VIG followed a different index, the NASDAQ US Dividend Achievers Select Index, until 19 September 2021. Long-term return figures for the fund span both.
VOO is simpler: it "attempts to replicate" the S&P 500, roughly 500 large US companies weighted by market value, with no dividend test at all.
VIG vs VOO Side by Side
| VIG | VOO | |
|---|---|---|
| Name | Vanguard Dividend Appreciation ETF | Vanguard S&P 500 ETF |
| Index | S&P U.S. Dividend Growers Index | S&P 500 Index |
| Expense ratio | 0.04% | 0.03% |
| Prospectus cost of $10,000 over 10 years | $51 | $39 |
| Number of stocks (30 June 2026) | 332 | 506 |
| Top 10 holdings, % of assets | 31.9% | 37.9% |
| Median market cap | $349.7B | $455.6B |
| Price/earnings ratio | 26.6x | 27.5x |
| 3-year standard deviation | 10.68% | 13.06% |
| 30-day SEC yield (30 Sep 2026) | 1.51% | 1.00% |
| Portfolio turnover, latest fiscal year | 8% | 2% |
| ETF share class net assets | $110.2 billion | $979.0 billion |
| Inception | 21 April 2006 | 7 September 2010 |
Where the Two Funds Differ
Both fact sheets use the same GICS sector scheme, so the weights can be compared directly.
| Sector (GICS), 30 June 2026 | VIG | VOO |
|---|---|---|
| Information Technology | 26.3% | 38.0% |
| Financials | 20.7% | 11.8% |
| Health Care | 17.7% | 8.9% |
| Industrials | 12.0% | 8.8% |
| Consumer Staples | 9.3% | 4.6% |
| Consumer Discretionary | 4.3% | 9.3% |
| Materials | 3.4% | 1.8% |
| Utilities | 3.0% | 2.2% |
| Energy | 2.9% | 3.0% |
| Communication Services | 0.0% | 9.7% |
| Real Estate | 0.0% | 1.8% |
VIG is not a technology-free fund. Apple, Microsoft and Broadcom are among its five largest holdings, and technology is still its biggest sector. But it has no communication services at all (no Alphabet, no Meta) and far less consumer discretionary (no Amazon, no Tesla). It makes up the difference with roughly double VOO's weight in financials, health care and consumer staples.
VIG is also somewhat less concentrated: its top ten were 31.9% of assets against 37.9% for VOO. Its median company is smaller, at about $350 billion against $456 billion. Valuations are close (26.6 against 27.5 times earnings), so VIG is better described as a quality tilt than a value fund.
What the Dividend-Growth Screen Has Been Worth
| Average annual return at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VIG, to 30 June 2026 | 17.53% | 15.41% | 10.90% | 13.13% |
| VOO, to 30 June 2026 | 22.28% | 20.58% | 13.36% | 15.47% |
| VIG minus VOO | -4.75 | -5.17 | -2.46 | -2.34 |
| VIG, to 30 September 2026 | 9.77% | 16.51% | 10.72% | 12.86% |
| VOO, to 30 September 2026 | 15.70% | 22.85% | 13.75% | 15.29% |
| VIG minus VOO | -5.93 | -6.34 | -3.03 | -2.43 |
VOO won at every horizon on both dates. Much of the decade's gain came from large companies VIG does not hold, so this result says as much about the period as about the screen. What VIG offered in return was a smoother ride: lower volatility on Vanguard's three-year measure and a smaller worst quarter in the prospectuses: -16.79% for VIG against -19.63% for VOO, both in the first quarter of 2020.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At VOO's 10-year return to 30 Jun 2026 (15.47%) | $42,140 |
| At VIG's 10-year return to 30 Jun 2026 (13.13%) | $34,338 |
Taxes in a Brokerage Account
Each prospectus reports returns before and after taxes on distributions for periods ended 31 December 2025, using the highest federal rates and ignoring state tax.
| Annualized at NAV, to 31 Dec 2025 | 1 year | 5 years | 10 years |
|---|---|---|---|
| VIG before taxes | 14.18% | 11.27% | 13.09% |
| VIG after taxes on distributions | 13.72% | 10.78% | 12.57% |
| VOO before taxes | 17.84% | 14.38% | 14.78% |
| VOO after taxes on distributions | 17.50% | 13.99% | 14.32% |
Over ten years VIG lost 0.52 points a year to tax on distributions and VOO 0.46, our arithmetic. The gap is small because VIG's yield is only half a point higher. A $100,000 position would have produced roughly $1,510 of reportable distributions a year at VIG's current SEC yield against $1,000 for VOO, assuming those yields hold.
Which One Fits You
One fund for US large caps: VOO. It already holds almost everything VIG holds, plus large companies VIG does not hold, for 0.03%.
You want a quality filter and a gentler ride: VIG. A decade of unbroken dividend raises screens for companies with steady cash flow. You give up the non-paying growth names, and the last ten years show what that can cost.
You want income: neither is the obvious pick. A 1.51% yield is not an income fund. Compare VIG vs VYM or SCHD vs VOO if cash flow is the goal.
Holding both. Because more than 90% of VIG is in VOO, adding VIG mostly raises your weight in the dividend growers you already own, and cuts your relative weight in Nvidia, Alphabet, Amazon and Meta. That is a deliberate tilt, not extra diversification.
401(k) menus and mutual funds. If your plan offers an S&P 500 index fund, that is VOO's exposure. Vanguard sells VIG's portfolio as Admiral Shares (VDADX) at 0.07% and VOO's as VFIAX at 0.04%, each generally with a $3,000 minimum to open an account directly with Vanguard. For the ETFs, both prospectuses say there is "no minimum dollar amount you must invest," so either works in a Fidelity, Schwab or other brokerage account.
Switching. Selling a VIG position at a gain in a taxable account to buy VOO realizes that gain. Redirecting new money costs nothing.
Sources & Methodology
- VIG summary prospectus, Form 497K dated 28 May 2026: fee table (0.04%, "restated to reflect current fees"), cost example, turnover, index description, returns and after-tax returns to 31 December 2025.
- Vanguard Specialized Funds, Form 485BPOS filed 28 May 2026: the ten-year and top-25% index rules.
- VDADX Admiral Shares summary prospectus, 28 May 2026: 0.07% and the $3,000 minimum.
- VOO summary prospectus, Form 497K dated 28 April 2026: fee table (0.03%), cost example, turnover, returns and after-tax returns.
- Vanguard VIG fact sheet and VOO fact sheet, both as of 30 June 2026.
- Vanguard VIG profile and VOO profile: SEC yields and month-end returns as of 30 September 2026, read 5 October 2026.
- VIG Form N-PORT, period ended 31 July 2026 and VOO Form N-PORT, period ended 30 June 2026: holdings behind the overlap.
How the overlap was computed. We matched both N-PORT holdings lists and summed, for each shared stock, the smaller of its two weights, the same method as our Portfolio Overlap Checker. The two filings are a month apart.
Notes and limits. We checked Vanguard's supplements filed after each prospectus through September 2026 and found no fee change for either fund. VIG's fact sheet lists one top-ten line as "Issuer Not Found" at 2.5%; we have not named it. Returns on the two dates are shown in separate rows and never mixed.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026. Confirm current figures with Vanguard and consider speaking with a licensed financial professional before acting.
FAQ: VIG vs VOO
Is VIG better than VOO?
Not on past returns. VOO returned 15.47% a year at NAV over the ten years to 30 June 2026, against 13.13% for VIG, and led at every shorter horizon too. VIG has been less volatile and yields a little more.
Should I hold both VIG and VOO?
You can, but by our calculation over 90% of VIG is already in VOO. Holding both mainly shifts weight toward dividend growers and away from Nvidia, Alphabet, Amazon and Meta.
How much do VIG and VOO overlap?
95.4% of VIG's weight is in stocks VOO owns, and those stocks are 43.1% of VOO, on our calculation from their July and June 2026 N-PORT filings. The overlap, the smaller weight of each shared stock summed, is 41.0%.
What are VIG's dividend rules?
Its index requires at least ten consecutive years of dividend increases and then excludes the top 25% highest-yielding eligible companies, per Vanguard's prospectus. REITs are excluded.
Which pays more dividends, VIG or VOO?
VIG. Its 30-day SEC yield was 1.51% on 30 September 2026, against 1.00% for VOO.
Does VIG own Apple and Microsoft?
Yes. Both were among VIG's five largest holdings at about 4.4% each in its July 2026 filing. It does not own Nvidia, Alphabet, Amazon, Meta or Tesla.
What is the expense ratio difference?
VIG charges 0.04% and VOO 0.03%: $4 against $3 a year per $10,000.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"VIG vs VOO: Over 90% of VIG Is Already Inside VOO." Wealthy Pot, 2026. https://wealthypot.com/vig-vs-voo/
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