VIG - VIG: Largest Dividend Growth ETF Good Strategy Low 1.8% Yield

2024-03-22 09:32:42 ET

Summary

• VIG is the largest dividend growth ETF in the market.
• The fund is cheap, simple, and effective, although not particularly strong in any one area.
• Recent underperformance has made its valuation more attractive relative to the S&P 500. Medium and long-term returns are quite strong too.

I last covered the Vanguard Dividend Appreciation Index Fund ETF ( VIG ), the largest dividend growth ETF in the market, in late 2022. In that article, I argued that VIG seemed fairly valued, and expected similar performance to that of the S&P 500. VIG has underperformed expectations since, somewhat significantly so:

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