The Vanguard Dividend Appreciation Index Fund ETF remains a Buy, excelling in risk-adjusted returns despite recent tech-driven market rallies. VIG's portfolio has modestly increased tech exposure, but the tilt is toward defensive mega-cap names, preserving its defensive character. Recent performance is earnings-driven, with the portfolio P/E falling from ~26.2x in April to ~25.1x now, underscoring valuation discipline.
For dividend growth investors, current yield tells only part of the story.
Vanguard has cemented itself as one of the biggest names in exchange-traded funds (ETFs). The investment advisory firm and global asset manager briefly surpassed BlackRock NYSE: BLK as the largest U.S. ETF provider by assets.
Own Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) for the income, and you are being quietly shortchanged by design.
The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) made its debut on 04/21/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
Many income investors assume that the highest-yielding dividend ETF is automatically the better investment.
The Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) pays a trailing yield of just 1.5%, which looks unremarkable next to money market funds still paying north of 4%.
The largest position in Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is Broadcom (NASDAQ:AVGO | AVGO Price Prediction), an AI semiconductor company whose stock has climbed 710% over five years.
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The pitch for the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) has always sounded sensible.
The Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is the largest dividend-growth ETF in the U.S.
A low-cost Vanguard index fund is drawing fresh attention for showing how ordinary monthly investing can turn into serious long-term wealth. The Vanguard Dividend Appreciation ETF, better known by its ticker VIG, is not the sort of fund that lights up social media.