Vanguard Dividend Appreciation ETF (VIG): A Standout Performer Among Vanguard’s Dividend ETFs

The article discusses several Vanguard dividend ETFs, but highlights the Vanguard Dividend Appreciation ETF (VIG) as a standout performer in terms of returns over the past decade. While none of the Vanguard dividend ETFs have outperformed the S&P 500’s more than 200% gain in that time frame, VIG has still managed to increase by 170%. This ETF offers investors exposure to some of the fastest-growing dividends among large companies, while maintaining a lower risk level through diversification with over 340 stocks. Its expenses are low, and it currently provides a yield of 1.8%, higher than the broader stock market’s yield of 1.4%. However, investors should be aware that there are other dividend ETFs offering higher yields, such as Vanguard’s International High Dividend Yield fund. It’s recommended that VIG plays a role in a diversified portfolio that incorporates other ETFs and individual dividend stocks. While VIG may not match the performance of tech-heavy indexes during periods of rapid growth, it is expected to outperform during times of market downturns or heightened fears of a recession. Ultimately, the decision to buy VIG should be weighed against other investment opportunities, such as those offered by The Motley Fool’s Stock Advisor service, which has produced significant gains over time.