Vanguard Dividend Appreciation ETF

VIG

Market cap $109B

The Vanguard Dividend Appreciation ETF (NYSEARCA:VIG | VIG Price Prediction) owns only companies with at least 10 consecutive years of dividend growth, screens out the highest yielders, and lets compounding work.

The Vanguard Dividend Appreciation ETF ( NYSEARCA :VIG | VIG Price Prediction ) is one of the most popular ETFs out there among both growth investors and dividend investors.

Vanguard Dividend Appreciation ETF (VIG) holds Broadcom (AVGO) at 5%, Apple (AAPL) at 4%, and Microsoft (MSFT) at 4%, but with yields of 0.34-0.85% it functions as a quality growth fund, not an income vehicle, while Schwab US Dividend Equity ETF (SCHD) yields 3.2% and Invesco S&P 500 High Dividend Low Volatility ETF (SPYD) yields 4.2% on the same positions.

The Vanguard Dividend Appreciation ETF (VIG) targets large-cap stocks with 10-plus years of consecutive annual dividend growth. Most steady, long-term dividend growers, however, don't offer huge yields.

The Vanguard Dividend Appreciation Index Fund ETF Shares (NYSEARCA:VIG | VIG Price Prediction) is having a quieter year than its big-cap dividend-growth reputation suggests, with shares around $229 and a 5% year-to-date gain trailing the broader market.

Making its debut on 04/21/2006, smart beta exchange traded fund Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.

Tony Dong is the founder of ETF Portfolio Blueprint.

Retirees evaluating dividend funds tend to anchor on current yield, which is exactly why Vanguard Dividend Appreciation ETF (NYSEARCA:VIG | VIG Price Prediction) often gets overlooked.

Most dividend ETF conversations start and end with the S&P 500. That is fine if you already own Schwab U.S.

Oil prices and inflation have moved significantly higher, creating an increased risk of economic slowdown later this year. Many portfolios still tilt heavily toward tech and growth stocks.