description Vanguard Dividend Appreciation ETF (VIG) Overview
While VIG is a known benchmark, its consistent performance and focus on established dividend growers make it a cornerstone recommendation. It screens for companies with a history of increasing dividends, filtering out cyclical or unstable payers. This fund is ideal for investors prioritizing dividend safety and compounding growth over immediate, high yield. It maintains a disciplined approach to quality dividend payers.
insights Ranking position
Vanguard Dividend Appreciation ETF (VIG) ranks #1 of 8 in the Fund ranking, ahead of iShares Core S&P Mid-Cap ETF (IJH).
balance Vanguard Dividend Appreciation ETF (VIG) Pros & Cons
- Low expense ratio
- Diversified dividend growers
- Strong profitability screening
- Low portfolio turnover
- Modest current yield
- Excludes recent dividend initiators
- Can lag growth rallies
help Vanguard Dividend Appreciation ETF (VIG) FAQ
What index does Vanguard Dividend Appreciation ETF use?
VIG tracks the S&P U.S. Dividend Growers Index. The fund focuses on U.S. companies with a record of raising dividends rather than simply chasing the highest current yield.
Is VIG mainly a high-dividend ETF or a dividend-growth ETF?
VIG is a dividend-growth ETF. It is designed around companies that have increased dividends over time, which makes it different from high-yield funds such as Vanguard High Dividend Yield ETF, ticker VYM.
What is VIG's expense ratio?
VIG is known for a very low Vanguard-style expense ratio, around 0.05% in recent years. That means the annual fund cost is about 50 cents per $1,000 invested, before any brokerage fees.
Does VIG hold only dividend aristocrats?
No. VIG uses its own index methodology and is not simply the same thing as the S&P 500 Dividend Aristocrats list. Investors comparing it often look at funds like NOBL, which specifically tracks S&P 500 Dividend Aristocrats.
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