Vanguard Dividend Appreciation ETF

VIG

Market cap $98.5B

The S&P 500 could crash on renewed trade war fears if the tension is not resolved soon. ETFs, such as VIG, DGRO, CCOR, TSPY, XYLD, USMV, GLD, SLV & XLP, could help weather the volatility.

If it's strong income and growth you're after, you may want to consider dividend-paying exchange-traded funds. We can look at high-yield dividend funds, which target companies with above-average yields in hot sectors such as consumer staples and telecommunications.

Even though we've been through this before, the U.S. government shutdown can be an unsettling time. Swaths of federal employees are off the job -- or still working but not being paid -- and it's unclear how long the deadlock will last.

VIG is the largest dividend ETF in the market, but it sure doesn't look like a traditional dividend ETF. A market cap weighting strategy is helping pull several mega-cap tech names into the top 10 holdings despite having minimal yields. VIG's tech sector allocation is nearly double that of a dividend ETF benchmark.

Dividend ETFs ensure retirement portfolios balance income, growth, and stability. Income-generating funds suit all ages, offering reliable payouts.

Not only do ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.

The Top 15 High-Growth Dividend Stock list for October 2025 targets a 12% long-term return, despite underperforming SPY and VIG in September. These 15 stocks offer a 1.4% average yield and have grown dividends at 19.1% annually over five years, with many trading at significant discounts. Recent changes include six new additions, with expected long-term CAGRs near 20% based on dividend yield theory and valuation metrics.

After gaining more than 20% in 2023 and again in 2024, the S&P 500 (SNPINDEX: ^GSPC) is up 12.3% year to date at the time of this writing. That means it could close out the final three months of the year flat and still post an above-average return.

It doesn't hurt to have a source of passive income in your retirement supported by your investment portfolio.

Vanguard Dividend Appreciation ETF remains a strong buy for investors seeking steady, long-term growth and reliable dividend appreciation. VIG offers a best-in-class expense ratio of just 0.05%, reinforcing Vanguard's commitment to low-cost investing and maximizing investor returns. The ETF's diversified portfolio balances high-quality growth and dividend stocks, delivering attractive earnings growth and outperforming the S&P 500 since inception.