The high quality companies that the fund holds include Coca Cola (NYSE: KO), Wal-Mart (NYSE: WMT) , Berkshire Hathaway (NYSE: BRK.B)  and IBM (NYSE: IBM), to name a few.This is why the ETF can also double as a core holding within a portfolio. Many of the top quality companies found in the index are U.S. large caps that maintain growth. [U.S .ETFs See More Inflows]

It is important to keep in mind that companies do change their dividend policies, however, for the type of companies that are represented in VIG, this is rare. VIG currently has about $9 billion in assets under management.

Vanguard Dividend Appreciation ETF

Tisha Guerrero contributed to this article.

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