DGRW - VIG: Annual Reconstitution Nets 25 New DGI Stocks

2024-03-21 15:29:57 ET

Summary

• The Index tracked by the Vanguard Dividend Appreciation Index Fund ETF Shares completed its three day annual reconstitution process on Tuesday, adding 45 new stocks and deleting 20.
• The changes slightly boosted exposure to Health Care, although the VIG ETF remains a very well diversified dividend growth fund due to its large number of holdings and 4% individual security cap rule.
• VIG's three-year dividend growth track record is impressive, and given its constituents strong dividend growth scores and relatively high earnings growth rates, VIG's ability to increase dividends moving is sufficient.
• Now that several major dividend ETFs have completed their annual reconstitutions, we can get an idea of which one looks best for 2024. This article evaluates VIG's fundamentals against DGRO, DGRW, and CGDV.
• Based on its dividend growth and diversification features, I'm reiterating my "buy" rating on VIG.

Investment Thesis

The holdings for the Vanguard Dividend Appreciation Index Fund ETF Shares ( VIG ) changed effective Wednesday, March 20, as the S&P U.S. Dividend Growers Index completed its three-day scheduled reconstitution process. This year's reconstitution saw 45 securities added and 20 deleted, improving the portfolio's diversification, value, and dividend yield features while maintaining high quality. ...

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