- VIG is a dividend-oriented fund, although its dividend growth-oriented stock selection process is more like a proxy for earnings growth.
- This is because the dividend yield is only modestly higher than funds like SPY, and still much less than "high dividend yield" funds.
- Instead, VIG is more like a slightly more concentrated version of SPY, but with a focus on companies that have proven abilities to pay dividends.
- VIG also demonstrates less price volatility during equity market sell-offs.
- Therefore, VIG is one reasonable alternative for investors looking for a lower-risk alternative to SPY or other higher-risk funds.
For further details see:
VIG: A Lower Risk Alternative To SPY