The Vanguard Dividend Appreciation ETF (VIG) has demonstrated a unique performance profile that appeals to income-focused investors, despite trailing broader market indices like the S&P 500 in strong bull markets. While VIG’s total returns over the past decade average 12.26% per year, they fall short of the S&P by 1.5 to 2 percentage points. However, the fund’s resilience shines during market downturns, as evidenced by its significantly smaller losses in 2022 compared to the S&P, placing it in the top 10% of large-blend funds that year.
With a current yield of approximately 1.7%, VIG offers a more attractive income distribution than the S&P 500 and Nasdaq 100, which yield 1.1% and 0.5%, respectively. Notably, dividend payouts have surged by 33% from 2021 to 2025, reflecting the fund’s commitment to delivering consistent income to shareholders.
For investors prioritizing dividend income and stability over high growth, VIG remains a compelling choice, especially in volatile market conditions.
Source: fool.com