While VIG has a 2.17% dividend yield, similar to that of the Vanguard S&P 500 ETF (NYSEArca: VOO), the dividend ETF has outperformed the S&P 500 ETF on a total return basis, with less volatility, over the past five years.
“We see VIG as a way to take advantage of the strong long-term track record of investing in dividend-paying stocks, without as many of the pitfalls,” Greg Peterson, investment research director at Ballentine Partners, said in the article. “It’s a more defensive way to play blue-chip stocks.”
Vanguard Dividend Appreciation ETF
For more information on dividends, visit our dividend ETFs category.
Max Chen contributed to this article.
Updated to include information about VIG’s underlying index.