- total return underperforms
- PE and PB are higher
In theory dividends stocks have a value tilt to help them, so your comment about P/E and P/B made me curious about these specific Vanguard funds.
Fund (symbol), 10-year performance, price/book, price/earnings
S&P 500 (VFINX) 9.65%, 3.2 p/b, 23 p/e (has 506 stocks)
Dividend Appreciation (VDAIX) 9.44%, 4.3 p/b, 24 p/e (has 177 stocks)
High Dividend Yield (VHDYX) 9.30%, 2.9 p/b, 21 p/e (has 399 stocks)
Value Index (VIVAX) 8.46%, 2.4 p/b, 20 p/e, (has 336 stocks)
Note that 10 year performance includes the 2008 financial crisis.
It looks like Dividend Appreciation actually tilts towards growth slightly, while High Dividend Yield tilts towards value slightly. At any rate, I was going to point out that a value tilt under-performs when value stocks under-perform. Dividend stocks might beat the S&P 500 when value stocks beat the S&P 500. That doesn't represent a victory for dividend stocks - it's just that "value stocks" are a known risk factor that over long time frames has historically paid off. Just not now. :)