The Vanguard Dividend Appreciation ETF focuses on dividend growth, not high yields, making it a good choice for long-term investors. The ETF tracks the S&P U.S. Dividend Growers Index, which selects companies with at least 10 years of dividend increases and avoids the highest-yielding stocks. With a modest expense ratio of 0.05%, the ETF offers a mix of capital appreciation and dividend growth. While the current dividend yield is around 1.7%, it may provide a substantial income stream in the future. For investors seeking immediate income, there are better options, but for long-term growth, this ETF could be a solid choice.
Read more at Nasdaq: Could Buying the Vanguard Dividend Appreciation ETF Today Set You Up for Life?