Why the Vanguard Dividend Appreciation ETF Will Outperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Dividend Appreciation ETF has earned a respected four-star ranking.
With that in mind, let's take a closer look at VIG and see what CAPS investors are saying about the ETF right now.
VIGfacts
Inception | April 2006 |
Total Net Assets | $12.4 billion |
Investment Approach | Seeks to track the performance of the Dividend Achievers Select Index, which consists of common stocks of companies that have a record of increasing dividends over time. |
Expense Ratio | 0.13% |
1-Year / 3-year / 5-Year Annualized Returns | 13.4% / 11% / 4.7% |
Dividend Yield | 2.4% |
Alternatives | iShares Dow Jones Select Dividend Index |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 95% of the 277 members who have rated VIG believe the ETF will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star rd80, tapped VIG as a particularly solid total-return opportunity:
Dividend growth stocks are my favorite type of investment. VIG offers an ETF full of them along with Vanguard's famous low fees. If I wasn't interested in owning individual stocks, this fund would probably be a core holding. Expect this to outperform in a soft market, but may lag in a strong up market.
Owning exceptional ETFs is a surefire way to secure your financial future. Of course, despite a strong four-star rating, VIG may not be your top choice.
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The article Why the Vanguard Dividend Appreciation ETF Will Outperform originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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