Invest in Vanguard Dividend Appreciation ETF for long-term wealth and income growth.

From Nasdaq: 2024-07-22 05:41:00

Investors are increasingly looking at dividend stock index funds with higher yields. However, the Vanguard Dividend Appreciation ETF (VIG) takes a different approach by focusing on companies with a track record of dividend growth. With low expenses and a 10-year annualized return of 11.1%, it offers potential long-term wealth and income growth.

The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, consisting of companies that have increased dividends annually for at least 10 years. Unlike high-yield indexes, it prioritizes dividend growth over yield. With diverse market cap sizes and 339 stocks, the fund has delivered strong performance with tech exposure.

Investing in Vanguard Dividend Appreciation ETF offers potential growth from companies like Apple, Microsoft, and Broadcom. While it may have a lower overall yield compared to other dividend ETFs, its focus on dividend growth and market-beating stocks can enhance future income. Consider its tech sector exposure for long-term investment gains.



Read more at Nasdaq: The Best Dividend Stock ETF to Invest $1,000 in Right Now