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Is Vanguard Dividend Appreciation ETF (VIG) a Strong ETF Right Now?
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Making its debut on 04/21/2006, smart beta exchange traded fund Vanguard Dividend Appreciation ETF (VIG - Free Report) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Vanguard, VIG has amassed assets over $97.7 billion, making it one of the largest ETFs in the Style Box - Large Cap Blend. VIG seeks to match the performance of the NASDAQ US Dividend Achievers Select Index before fees and expenses.
The S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.05% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.65%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
VIG's heaviest allocation is in the Information Technology sector, which is about 27.5% of the portfolio. Its Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 6.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM).
Performance and Risk
So far this year, VIG has added roughly 11.16%, and was up about 10.01% in the last one year (as of 11/18/2025). During this past 52-week period, the fund has traded between $173.71 and $220.10.
VIG has a beta of 0.85 and standard deviation of 12.62% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 340 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard Dividend Appreciation ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
WisdomTree U.S. Quality Dividend Growth ETF (DGRW) tracks WisdomTree U.S. Quality Dividend Growth Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index. WisdomTree U.S. Quality Dividend Growth ETF has $15.77 billion in assets, iShares Core Dividend Growth ETF has $34.5 billion. DGRW has an expense ratio of 0.28% and DGRO changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Vanguard Dividend Appreciation ETF (VIG) a Strong ETF Right Now?
Making its debut on 04/21/2006, smart beta exchange traded fund Vanguard Dividend Appreciation ETF (VIG - Free Report) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Vanguard, VIG has amassed assets over $97.7 billion, making it one of the largest ETFs in the Style Box - Large Cap Blend. VIG seeks to match the performance of the NASDAQ US Dividend Achievers Select Index before fees and expenses.
The S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.05% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.65%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
VIG's heaviest allocation is in the Information Technology sector, which is about 27.5% of the portfolio. Its Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 6.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Jpmorgan Chase & Co (JPM).
Performance and Risk
So far this year, VIG has added roughly 11.16%, and was up about 10.01% in the last one year (as of 11/18/2025). During this past 52-week period, the fund has traded between $173.71 and $220.10.
VIG has a beta of 0.85 and standard deviation of 12.62% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 340 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard Dividend Appreciation ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
WisdomTree U.S. Quality Dividend Growth ETF (DGRW) tracks WisdomTree U.S. Quality Dividend Growth Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index. WisdomTree U.S. Quality Dividend Growth ETF has $15.77 billion in assets, iShares Core Dividend Growth ETF has $34.5 billion. DGRW has an expense ratio of 0.28% and DGRO changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.