VIG is an ETF that supports a growth-focused strategy and can give steady results over the long term. VIG also has a low turnover of 14% a year, and an expense ratio of 0.13%, adding to the list of advantages, according to XTF. [VIG Has Biggest Target Stake Among Dividend ETFs]
In comparison, the iShares Dow Jones Select Dividend ETF (NYSEArca: DVY) is an income focused fund that zeros in on the utilities sector. DVY’s underlying index takes the universe of dividend-paying stocks with a positive dividend-per-share growth rate, a payout ratio of 60% or less, and at least a five year track record of dividend payment and then selects the 100 highest-yielding stocks.
Although this ETF is loaded with high-yielding, reliable dividend payers, DVY has a yield of 3.88% and an expense ratio of 0.40%. It is more expensive than VIG, but the higher yield may pay off.
Vanguard Dividend Appreciation Index Fund
Tisha Guerrero contributed to this article.