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Is Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) a Strong ETF Right Now?
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The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG - Free Report) 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.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
VIG is managed by Vanguard, and this fund has amassed over $110.97 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Blend. Before fees and expenses, VIG seeks to match the performance of the NASDAQ US Dividend Achievers Select Index.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.50%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 24.4% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 4.06% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Performance and Risk
Year-to-date, the Vanguard Dividend Appreciation Index Fund ETF Shares return is roughly 9.42% so far, and was up about 16.4% over the last 12 months (as of 07/27/2026). VIG has traded between $204.09 $239.13 in this past 52-week period.
The ETF has a beta of 0.82 and standard deviation of 12.02% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard Dividend Appreciation Index Fund ETF Shares 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.
Invesco S&P 500 Quality ETF (SPHQ) tracks S&P 500 Quality Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index. Invesco S&P 500 Quality ETF has $19.38 billion in assets, iShares Core Dividend Growth ETF has $42.56 billion. SPHQ has an expense ratio of 0.15% 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 Index Fund ETF Shares (VIG) a Strong ETF Right Now?
The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG - Free Report) 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.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
VIG is managed by Vanguard, and this fund has amassed over $110.97 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Blend. Before fees and expenses, VIG seeks to match the performance of the NASDAQ US Dividend Achievers Select Index.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.50%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 24.4% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 4.06% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Performance and Risk
Year-to-date, the Vanguard Dividend Appreciation Index Fund ETF Shares return is roughly 9.42% so far, and was up about 16.4% over the last 12 months (as of 07/27/2026). VIG has traded between $204.09 $239.13 in this past 52-week period.
The ETF has a beta of 0.82 and standard deviation of 12.02% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk .
Alternatives
Vanguard Dividend Appreciation Index Fund ETF Shares 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.
Invesco S&P 500 Quality ETF (SPHQ) tracks S&P 500 Quality Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index. Invesco S&P 500 Quality ETF has $19.38 billion in assets, iShares Core Dividend Growth ETF has $42.56 billion. SPHQ has an expense ratio of 0.15% 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.