Vanguard Dividend Appreciation ETF: A Growth-Oriented Approach for Long-Term Investors
The Vanguard Dividend Appreciation ETF (VIG) defies expectations with its dual focus on dividends and growth. Unlike traditional income-focused funds, VIG systematically excludes the highest-yielding stocks, targeting companies with a proven track record of dividend increases over a decade. This methodology inherently favors firms with robust financial health and growth potential.
Market-cap weighting further refines the selection, creating a portfolio tilted toward lower-yielding but faster-growing equities. The strategy reflects a deliberate shift from yield chasing to sustainable wealth accumulation—a nuanced approach for investors with extended time horizons.