- In the past, VIG's trade-off was clear to me: a bit more in dividends and a bit less volatility, but a bit less in total returns.
- But now, I see VIG performing similar to the S&P 500 in flat and declining markets and being a persistent laggard in a bull market that doesn't want to end.
- Based on sales, earnings, and even dividend growth rates, the S&P 500 is the superior Index, and I can't find many good reasons to recommend VIG anymore.
- It's not a time to panic as VIG will still deliver market-like returns, but I do think investors should take some time to consider what they're gaining from this ETF, and if their cash could be better deployed elsewhere.
For further details see:
VIG: How This $66B Dividend Growth ETF Lost Its Appeal