Investing Insights on Vanguard Dividend Appreciation ETF
The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) tracks over 300 dividend stocks, focusing on companies with a strong history of increasing dividends rather than high current yields. With an expense ratio of just 0.05%, the fund allocates a significant portion of its investments to the technology sector, which is its largest allocation. Notable top holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Mastercard (NYSE: MA), all of which have consistently increased their dividend payouts despite having current yields below 1%.
The ETF is particularly suitable for long-term investors who may not need immediate income, as it has an average annual earnings growth rate of 13%. Through its strategic investments in fast-growing companies, it aims to deliver a robust income stream for future needs.
